H2O Innovation Announces Completion of the Acquisition of Genesys
15 Novembro 2019 - 10:00AM
(TSXV: HEO) – H2O Innovation Inc. (“H2O
Innovation” or the “Corporation”) is pleased to report the
completion of the previously announced acquisition, on October 28,
2019, of Genesys Holdings Limited, Genesys Manufacturing Limited,
Genesys International Limited and Genesys North America, LLC
(collectively “Genesys”), a UK privately-owned group of companies
specializing in the development and manufacturing of specialty
chemicals dedicated to water treatment, at a purchase price of
£16.95 M ($28.39 M).
Genesys develops, manufactures and distributes
speciality reverse osmosis (RO) membrane chemicals, antiscalants,
cleaners, flocculants and biocides, and offers, through a large
distribution network of 70 distributors, a portfolio of over 35
diversified products with unique formulation that are manufactured
in its facility located in Cheshire, UK. In addition, Genesys also
offers complete laboratory services such as feed water and
pre-treatment tests, membrane autopsies and cleaning program
design.
This transaction will help strengthen H2O
Innovation’s specialty chemicals business line in many ways. First,
it will enable the Corporation to build a strong portfolio of
products by combining the strengths of both the phosphonate
technology and dendrimer chemistry. This extended and diversified
product offering should enable H2O Innovation to cover a wider
range of applications related to membrane filtration, and thus,
improve its specialty chemicals’ sales. Furthermore, the
combination of Genesys and PWT sales distribution networks will
allow to build one of the largest distribution platforms for
specialty chemicals, including 100 distributors active in more than
70 countries. Finally, since PWT is already manufacturing its
products in California (USA) while Genesys is blending theirs in
Cheshire (UK), the merger of the two companies will allow the
Corporation to optimize its manufacturing strategy in order to
lower freight costs for our customers and reduce delivery time.
“Through our innovative product line and
first-class service, Genesys has become a leading name in the
membrane market. All our branded formulations have been developed
in-house and are produced at our UK factory in Cheshire. Although
Genesys is highly profitable and has grown strongly over the years,
we realize that the next stage in growth can only be achieved in
combination with a larger organization”, said Ted Darton,
President and Co-founder of Genesys.
“Whilst there was a significant level of
interest in our business, we chose H2O Innovation as it became
apparent, they were the perfect partner and ultimately represented
the right home for our business and more importantly our employees.
H2O Innovation will maintain the family feel that Genesys has
developed by looking after its staff and distributors. As there are
significant areas of synergy for both companies, we fully endorse
the acquisition knowing it will be highly beneficial to all those
involved”, added Ursula Annunziata, Director and Co-founder
of Genesys.
The purchase price was established at £16.95 M
($28.39 M), on a cash-free, debt-free basis fully payable at
closing of the acquisition. Genesys’ acquisition has been financed
through committed credit facility as well as proceeds from an
equity offering for gross proceeds of $22 M, including an overnight
marketed public offering of subscription receipts for anticipated
gross proceeds of $14 M as well as a concurrent brokered private
placement of subscription receipts with BDC Capital Inc., Caisse de
dépôt et placement du Québec and Investissement Québec for
aggregate proceeds of $8 M. The acquisition will also be financed
by such amount needed to be drawn on the term loan made available
in an amount of $12 M.
Prospective disclosures
Certain statements set forth in this press
release regarding the operations and the activities of H2O
Innovation as well as other communications by the Corporation to
the public that describe more generally management objectives,
projections, estimates, expectations or forecasts may constitute
forward-looking statements within the meaning of securities
legislation. Forward-looking statements concern analysis and other
information based on forecast future results and the estimate of
amounts that cannot yet be determined. Forward-looking statements
include the use of the words such as “anticipate”, “if”, “believe”,
“continue”, “could”, “estimate”, “expect”, “intend”, “may”, “plan”,
“potential”, “predict”, “project”, “should” or “will” and other
similar terms as well as those usually used in the future and the
conditional. Those forward-looking statements involve a number of
risks and uncertainties, which may result in actual and future
results of the Corporation to be materially different than those
indicated. Information about the risk factors to which the
Corporation is exposed is provided in the Annual Information Form
dated September 24, 2019 available on SEDAR (www.sedar.com).
Unless required to do so pursuant to applicable securities
legislation, H2O Innovation assumes no obligation to update or
revise forward-looking statements contained in this press release
or in other communications as a result of new information, future
events and other changes.
About H2O Innovation
H2O Innovation designs and provides
state-of-the-art, custom-built and integrated water treatment
solutions based on membrane filtration technology for municipal,
industrial, energy and natural resources end-users. The
Corporation’s activities rely on three pillars which are
i) water and wastewater projects and services;
ii) specialty products, which include a complete line of maple
equipment and products, specialty chemicals, consumables and
specialized products for the water treatment industry; and
iii) operation and maintenance services for water and
wastewater treatment systems and utilities. For more information,
visit www.h2oinnovation.com.
Neither TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Source:
H2O Innovation Inc. www.h2oinnovation.com
Contact:
Marc Blanchet +1 418-688-0170
marc.blanchet@h2oinnovation.com
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