Water Intelligence PLC Reacquisition of South Oregon Franchise (1200U)
01 Décembre 2021 - 8:00AM
UK Regulatory
TIDMWATR
RNS Number : 1200U
Water Intelligence PLC
01 December 2021
Reacquisition of South Oregon Franchise
Water Intelligence plc (AIM: WATR.L) ("Water Intelligence" or
"Group"), a leading multinational provider of precision,
minimally-invasive leak detection and remediation solutions for
both potable and non-potable water is pleased to announce that it
has reacquired its South Oregon franchise (the "Acquisition")
within the Group's American Leak Detection subsidiary ("ALD").
Today's acquisition accelerates the Group's strong growth
trajectory by adding scale to its regional hub of corporate
operations in the northwest United States; a territory where green
economy solutions are in high demand.
Key terms of the Acquisition
The purchase price of $1.38 million in cash will be paid over
the next twelve months and includes all assets required to conduct
operations, including trucks and equipment. The purchase price is
based on a pro forma revenue of $1.15 million and $0.25 million in
profit before tax for full year 2021. The territory had $0.25
million in gross assets as of 31 October 2021. The acquisition will
be earnings accretive for Water Intelligence shareholders.
Strategic rationale for the Acquisition
The Acquisition reinforces the Group's strategy of establishing
regional corporate hubs in the US with scale to accelerate growth
in nearby corporate and franchise locations. With respect to the
Northwest, the growth objectives for the regional hub were
announced with the acquisition of the Seattle franchise in January
2021: (i) integrate corporate operations to the south with
Portland, Oregon and add efficiencies of scale; (ii) open a new
corporate location in Vancouver, Canada to the north; and (iii)
open the US headquarters for UK-based Water Intelligence
International to deliver a broader range of municipal solutions to
take advantage of the expected increase in infrastructure
spending.
The Group is on-track with meeting these objectives and with
today's acquisition of South Oregon, expects to advance them
further by: (i) increasing operating efficiencies by extending
Portland's operations further south; (ii) integrating a South
Oregon franchise team that has worked seamlessly with the Seattle
and Portland operations for many years; and (iii) leveraging the
expertise of the franchise owner, who has significant experience
with municipal solutions and is staying on as a corporate manager.
The franchise owner will, in due course, be granted options for
10,000 shares at a premium to the prevailing share price at the
time of the grant (to be not less than the recent placing price of
1200p) and have a four-year vesting period, consistent with recent
franchise reacquisitions.
With increased corporate presence in the Northwest, the Group
also plans to launch a regional training center for the Western
part of the United States. The training center would enable the
Group to add more trained technicians for both corporate and
franchise stores to capture ever-increasing market demand as the
price of water increases due to drought conditions and issues of
climate change in the Western U.S.
Executive Chairman, Dr. Patrick DeSouza commented: "I am very
pleased with today's acquisition, which builds on our recent
fundraising and acquisitions over the last few years. We are
integrating a strong team with our growing corporate operations in
the northwest United States; the team will contribute significantly
to our upward trajectory. Market demand for water infrastructure
and green economy solutions is especially strong in the northwest
United States and growth has accelerated despite Covid-related
issues because water infrastructure is deemed to be 'an essential
service'. We take it as our mission to deliver minimally invasive
solutions everywhere to preserve the world's most precious
resource."
The information communicated in this announcement is inside
information for the purposes of Article 7 of Regulation
596/2014
Enquiries :
Water Intelligence plc
Patrick DeSouza, Executive Chairman Tel: +1 203 654 5426
RBC Capital Markets - Joint Broker Tel: +44 (0)20 7653 4000
Jill Li
Elizabeth Evans
WH Ireland Limited - NOMAD & Joint Tel: +44 (0)20 7220 1666
Broker
Adrian Hadden
Ben Good
Tel: +44 (0)7920 599 793
Dowgate Capital Ltd - Joint Broker
Stephen Norcross
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