PWT acquired by H2O Innovation
Canadian water-treatment systems manufacturer H2O Innovation Inc announced on 28 May 2009 the acquisition of substantially all of the assets of Professional Water Technologies (PWT) in an arms' length transaction involving H2O subsidiary Membrane Systems Inc.PWT is a California-based company that develops products for maintaining and operating municipal, industrial and commercial membrane filtration systems, in particular for reverse-osmosis.
The purchase price of US$ 3.7 million is payable in cash at closing and may be increased up to US$ 5.7 million, whereby entitling PWT to receive earn-outs payments of up to $2 million if PWT's sales reach $13.1 million within the 24 months period following the closing of the transaction.
H2O Innovation also announced that it has secured financing with Loewen, Ondaatje, McCutcheon Ltd and Le Fonds d'investissement RÉA II Natcan Inc for Can$ 4.25 million, which is to be used for the payment of the purchase price for the proposed acquisition of assets of PWT and ancillary transaction costs.
H2O Innovation is also contemplating additional debt financing of up to Can$ 2.5 million to be used to assist in the growth of its business.
"This acquisition positions H2O Innovation as a complete membrane filtration expert providing everything from customized system design to manufacturing, maintenance and operational efficiency consulting," said Frederic Dugré, president and CEO of H2O Innovation. "PWT also significantly enhances our international reach through its network of distributors."