CECO Environmental Plunges 15.6% After Divesting Fluid Handling Business

On April 3, 2025, CECO Environmental's stock experienced a significant drop of 15.6% in pre-market trading.

CECO Environmental has completed the divestiture of its Fluid Handling business, known as Global Pump Solutions (GPS), to May River Capital for $110 million in cash. This transaction, effective March 31, 2025, includes three industrial pump brands: Dean, Fybroc, and Sethco, which serve over 1,500 global customers. The proceeds from this sale will be used to reduce debt and fund strategic growth investments, aligning with CECO's recent acquisitions of Verantis Environmental and Profire Energy. The company aims to focus on its core environmental solutions offerings in the Industrial Air, Industrial Water, and Energy Transition segments.

Todd Gleason, CECO’s Chief Executive Officer, expressed satisfaction with the divestiture, stating that it enables greater alignment of the company's portfolio with high-growth opportunities in energy and industrial markets. The sale of the GPS business is expected to create additional capacity for further investment in CECO’s growth and business expansion, following the recent acquisitions of Verantis Environmental and Profire Energy. The company is committed to streamlining operations and focusing capital deployment on higher-growth segments aligned with environmental and sustainability trends.