Crawford United Corporation Completes Acquisition of Rahn Industries, Incorporated

Crawford United Corporation (OTCMKTS:CRAWA) recently announced the successful completion of the acquisition of Rahn Industries, Incorporated, a California corporation, by its wholly-owned subsidiary, Crawford AE LLC. The acquisition, finalized on January 2, 2025, involved the purchase of all issued and outstanding shares of Rahn by Air Enterprises for an approximate cash payment of $13 million, subject to post-closing adjustments based on specific criteria outlined in the Equity Purchase Agreement.

As part of the transaction, a portion of the purchase price, totaling $1 million, has been placed in escrow for 12 months to cover any working capital deficiencies identified post-closing and to secure Seller’s indemnification obligations. The Equity Purchase Agreement entails standard indemnification obligations related to breaches of representations, warranties, and covenants, post-closing cooperation on tax matters, and financial statement preparations.

In addition to the acquisition, a consulting agreement was established between Crawford United Corporation and Seller, where Seller agreed to provide transitional services for Rahn’s business post-transaction. Moreover, the Seller committed to non-disclosure, non-competition, and non-solicitation obligations concerning Rahn’s business entities for a one-year duration.

While customary representations, warranties, and covenants were made by the involved parties, it is crucial to note that these were primarily intended for the Equity Purchase Agreement and should be viewed in conjunction with Crawford United Corporation’s periodic reports and disclosures filed with the Securities and Exchange Commission. The Equity Purchase Agreement attached to the filing offers additional insight into the terms of the transaction.

It is noteworthy that neither Crawford United Corporation nor its affiliates held a significant prior relationship with Seller beyond the agreements associated with the transaction. The press release regarding this acquisition was issued on January 7, 2025, and elaborates more on the details of the transaction.

Investors interested in further details are encouraged to review the full Equity Purchase Agreement as referenced in the report. This summary is provided for informational purposes and does not encompass all aspects of the transaction. It is advisable for investors to consider all relevant information before making any decisions concerning the acquisition.

For more insights into the transaction, investors can access Crawford United Corporation’s latest 8-K filing with the Securities and Exchange Commission.

Please note that this article serves as a summary of the 8-K filing made by Crawford United Corporation and does not reflect the views or opinions of MarketBeat.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Crawford United’s 8K filing here.

Crawford United Company Profile

Crawford United Corporation, together with its subsidiaries, provides specialty industrial products in the United States, Puerto Rico, Mexico, Canada, and internationally. It operates through two segments: Commercial Air Handling Equipment; and Industrial and Transportation Products. The Commercial Air Handling segment designs, manufactures, and installs large-scale commercial, institutional, and industrial custom air handling solutions to health care, education, pharmaceutical, and industrial manufacturing markets under the FactoryBilt and SiteBilt brand names.