H₂O Innovation bags Clearlogx
Membrane filtration company, H₂O Innovation, as acquired all of the assets of control technology specialist, Clearlogx, that relate to its control technology and its specialty coagulants.The Clearlogx technology, according to H₂O Innovation, "precisely and continuously controls the feed of specialty coagulants used in water treatment to maintain a proper pH level and an optimum particle charge, while simultaneously improving overall treatment process efficiency." It was developed by director and shareholder of Clearlogx, Gregg McLeod.
The technology is particularly critical for ultrafiltration water treatment plants to minimize membrane fouling. So it is "highly complementary" to H₂O Innovationn's project business.
IH2O Innovation will purchase also Clearlogx's business related to the sale of coagulants for conventional and membrane filtration systems. "This line of specialty coagulants is marketed under the name PWT and will significantly increase the level of recurrent sales," said H2O Innovation.
The Clearlogx control technology will be added to H2O Innovation's systems, while the specialty coagulants business will join PWT speciality chemicals group, making both of them stronger and more profitable.
President and chief executive officer of H₂O Innovation said: "This acquisition fits perfectly with H2O Innovation's vision to complement its offering to its customers and to create synergies between its different business lines." He went on to say the transaction will immediately to earnings with current sales of some US$ 1.2 million a year and an earnings before interest, tax, depreciation and amortisation reaching 15% to 25% of Clearlogx's revenues.
The deal was financed entirely by US$2 million secured long-term debt with a Canadian chartered bank. It will not require equity financing so there will be no dilution of H2O Innovation's shareholders' ownership.
H2O Innovation expects to complete the acquisition at the beginning of October. 2015.