Key Highlights
- Advanced Industrial Services, a Cemtrex subsidiary, purchased Plant Engineering Services (PES) for $3.5 million cash
- Earn-out structure allows for up to $1.5 million in additional payments based on three-year performance targets
- PES projected to contribute $4M–$5M in annual revenue over the coming 12 months
- CETX shares surged by as much as 33%, reaching approximately $3.35
- Marks Cemtrex’s third completed acquisition this fiscal year, with another deal pending
Shares of Cemtrex (CETX) rallied sharply on Thursday after the company revealed that its Advanced Industrial Services (AIS) division has completed the acquisition of Plant Engineering Services (PES), an engineering company based in Fort Wayne, Indiana, for roughly $3.5 million in cash.
CETX stock spiked by as much as 33% following the announcement, hovering near $3.35 during recent trading — though the shares remain significantly below historical peaks. Before Thursday’s rally, the stock had plummeted 98% over the trailing twelve months.
The transaction features a potential earn-out provision worth up to $1.5 million, contingent upon PES achieving specific performance benchmarks during the next three years. Cemtrex financed the entire purchase using existing cash reserves.
Notably, the $3.5 million acquisition price exceeds Cemtrex’s current market capitalization of $3.11 million. The company also maintains $22.78 million in total debt, making the transaction’s magnitude particularly significant.
PES focuses on designing, modernizing, and relocating hydraulic and mechanical press systems. Its client base spans aerospace forging, automotive production, defense contractors, and heavy trucking sectors. The company has maintained operations for more than three decades.
Cemtrex anticipates PES will deliver immediate profitability and generate between $4 million and $5 million in revenue during the next year, driven by existing backlog and historical results.
Strategic Value of the PES Acquisition
PES founder Mark Bohler will continue leading the business as president, while the company retains its brand name and Fort Wayne headquarters. The existing workforce will remain unchanged.
CEO Saagar Govil highlighted the strategic fit of 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 explained.
The merger consolidates capabilities across rigging, millwrighting, electrical and mechanical installation, hydraulic systems, and automation into a unified operation.
AIS has demonstrated strong growth, expanding from approximately $21 million in annual revenue during fiscal 2022 to around $38 million in fiscal 2025, providing stability amid the parent company’s stock challenges.
Acquisition Pipeline Continues
This transaction represents Cemtrex’s third completed acquisition during the present fiscal year. The company has already executed a letter of intent for a fourth acquisition, anticipated to finalize during the September quarter.
On other fronts, Cemtrex’s Vicon Industries division recently secured approximately $2 million in orders for security technology systems destined for a correctional facility in the United Kingdom. Additionally, subsidiary Invocon obtained a Phase I SBIR contract from the Naval Sea Systems Command related to modular mine warfare components.
CETX stock was trading up 19.64% at $3.35 according to the most recent data available.
