Key Highlights
- Advanced Industrial Services, a Cemtrex subsidiary, purchased Plant Engineering Services (PES) for $3.5 million cash
- Performance-based earn-out structure could deliver an additional $1.5 million over a three-year period
- Annual revenue contribution from PES projected at $4M–$5M over the coming year
- Shares of CETX surged by as much as 33%, reaching approximately $3.35
- Marks the company’s third M&A transaction this fiscal year, with another deal already under agreement
Cemtrex (CETX) announced Thursday that its Advanced Industrial Services (AIS) division has completed the acquisition of Plant Engineering Services (PES), an Indiana-based engineering operation located in Fort Wayne, in a transaction valued at approximately $3.5 million cash.
Shares of CETX climbed as high as 33% following the announcement, with the stock trading near $3.35 during recent sessions — though this remains significantly below historical price levels. Prior to Thursday’s rally, the equity had declined 98% over the preceding twelve months.
The transaction structure includes performance-linked contingent consideration of up to $1.5 million, payable upon PES achieving specified operational benchmarks during the next three years. Cemtrex financed the acquisition entirely using existing cash reserves.
Notably, the $3.5 million purchase price exceeds Cemtrex’s current market capitalization of $3.11 million. Additionally, the company maintains $22.78 million in total debt obligations, making the relative magnitude of this transaction particularly significant.
PES focuses on engineering services including design, modernization, and facility relocation for hydraulic and mechanical press equipment. Its client base spans aerospace forging operations, automotive production facilities, defense contractors, and heavy commercial trucking manufacturers. The company has maintained operations for more than three decades.
According to Cemtrex management, PES is anticipated to generate positive earnings immediately while adding between $4 million and $5 million in revenue during the next twelve months, based on its historical financial performance and existing project pipeline.
Strategic Value of the Acquisition
PES founder Mark Bohler will continue leading the operation as president, while the business retains both its established brand and Fort Wayne location. The existing workforce will remain in place without planned restructuring.
CEO Saagar Govil emphasized the strategic complementarity of the transaction. “PES brings deep engineering expertise that AIS has never had in-house, and AIS brings the field execution resources that PES has historically sourced externally,” he explained.
The merged entity consolidates capabilities across rigging services, millwright work, electrical and mechanical installation, hydraulic systems, and industrial automation within a single operational structure.
AIS has demonstrated strong organic growth, expanding from approximately $21 million in annual revenue during fiscal 2022 to roughly $38 million in fiscal 2025, even as the parent company’s equity valuation contracted substantially.
Additional Acquisitions Planned
This transaction represents Cemtrex’s third acquisition closure during the present fiscal year. Management has already executed a letter of intent for a fourth transaction, which is anticipated to finalize during the September quarter.
In parallel developments across the Cemtrex corporate structure, its Vicon Industries subsidiary recently secured an approximately $2 million security technology contract for a correctional institution in the United Kingdom. Meanwhile, Invocon, another subsidiary, obtained a Phase I SBIR award from the Naval Sea Systems Command related to modular mine warfare system components.
CETX stock traded at $3.35, representing a 19.64% gain as of the most recent market data.
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