Key Highlights
- Cemtrex’s AIS division purchased Plant Engineering Services (PES) in a $3.5 million all-cash transaction
- Earn-out provisions allow for up to $1.5 million in additional payments based on three-year performance targets
- The acquired firm is projected to generate $4M–$5M in annual revenue over the coming 12 months
- CETX shares rallied as high as 33% following the announcement, reaching approximately $3.35
- PES represents Cemtrex’s third completed acquisition during this fiscal year, with another deal pending
Cemtrex (CETX) revealed on Thursday that its Advanced Industrial Services (AIS) division has completed the purchase of Plant Engineering Services (PES), an Indiana-based engineering company located in Fort Wayne, for roughly $3.5 million in cash.
CETX shares skyrocketed up to 33% following the announcement, hovering near $3.35 during recent trading — although this remains significantly below historical price levels. Prior to Thursday’s spike, the stock had declined 98% over the preceding twelve months.
The transaction structure incorporates performance-based earn-out payments potentially worth up to $1.5 million, contingent upon PES achieving specific operational benchmarks during the subsequent three-year period. The acquisition was financed entirely through Cemtrex’s available cash reserves.
For perspective, the $3.5 million acquisition cost exceeds Cemtrex’s current market capitalization of $3.11 million. Additionally, the company maintains $22.78 million in aggregate debt obligations, adding context to the transaction’s significance.
PES focuses on engineering services including the design, modernization, and facility relocation of hydraulic and mechanical press equipment. Its client base spans aerospace forging operations, automotive production facilities, defense contractors, and heavy trucking manufacturers. The company has maintained operations for more than three decades.
According to Cemtrex, PES is anticipated to achieve immediate profitability while adding between $4 million and $5 million in revenue during the next year, based on its operational history and existing project pipeline.
Strategic Value of the Acquisition
PES’s founder, Mark Bohler, will continue leading the business as president, with the company retaining both its brand name and Fort Wayne operational base. Cemtrex plans to maintain the current workforce without disruption.
CEO Saagar Govil explained the strategic rationale behind the acquisition. “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 said.
The acquisition merges complementary capabilities across rigging, millwrighting, electrical and mechanical installation services, hydraulic systems, and automation technologies into a unified operation.
AIS has demonstrated impressive growth independently, expanding from approximately $21 million in annual revenue during fiscal 2022 to around $38 million in fiscal 2025, maintaining strong performance despite challenges at the parent company level.
Continued M&A Activity
The PES acquisition marks Cemtrex’s third completed transaction during the present fiscal year. Management has already executed a letter of intent for an additional acquisition, which is projected to reach completion during the September quarter.
In related developments across Cemtrex’s business portfolio, its Vicon Industries division recently secured approximately $2 million in orders for security technology systems destined for a correctional facility in the United Kingdom. Meanwhile, subsidiary Invocon was awarded a Phase I SBIR contract from the Naval Sea Systems Command focused on developing modular mine warfare components.
CETX stock was trading 19.64% higher at $3.35 based on the most recent available market data.
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