(Quebec) H2O Innovation makes its shopping in the US. The Quebec company specializing in water treatment by using membrane filtration Utility Partners buys US company for the sum of US $ 17 million.
To complete the transaction, the company, which has a team of 185 employees in North America, enjoys a boost from the Quebec government for the implementation of the financial package.
Indeed, Investissement Quebec is investing nearly $ 4.4 million through a private placement in H2O Innovation, a public company listed on the Toronto Stock Exchange. Wednesday at the close of market share of H2O Innovation (TSXV: HEO) was worth $ 1.51 up 1 ¢.
Utility Partners specializes in the operation and maintenance of water treatment plants and wastewater for small and medium US municipalities. It operates 34 water treatment plants in six states, mainly on the coast of the Gulf of Mexico, on the West Coast and in New England.
At the end of its fiscal year 2015, Utility Partners posted revenues of US $ 34.5 million and earnings before interest, taxes, depreciation and amortization (EBITDA) of US $ 2.2 million. The company pocket long-term contracts with renewal options for several years that will yield revenue of about $ 88.3 million in H2O Innovation’s coffers over the next five years.
With this acquisition, H2O Innovation adds a string to its bow.
In addition to manufacturing of membrane filtration systems for the treatment of water from cities and industries and sale of chemicals, now the company founded in 2000 in the wake of the Walkerton tragedy now jumps headfirst into the operation and maintenance of water treatment plants and wastewater.
“This acquisition will help us better serve our existing customers through an improved offer of services and products tailored to their needs,” said Frederic Dugre which, in addition to being President and CEO of H2O Innovation is the founder of the company. “We believe this alliance with Utility Partners will open the door to a new market and will create many cross-selling opportunities between our industries.”
“As we are seeing significant growth in contracts covering the design, construction and operation of water treatment plants, H2O Innovation, following the integration of Utility Partners will become one of the only companies to be able to offer both high quality water treatment equipment and operation and maintenance services, “said for his part, President of Utility Partners, Robert Monette.
Investissement Québec accompanies H2O Innovation since 2013. “The company will now be in a position to increase its presence in the US market while ensuring the maintenance of the head office in Quebec City,” said the CEO of Investissement Québec, Pierre Gabriel Cote.
For the first three quarters of its fiscal year 2016, H2O Innovation recorded revenues of $ 39 million, up $ 2.6 million compared to the same period in 2015.
Recall that last spring H2O Innovation won the price of the technology company of the year at the Global Water Awards under the noses of giants such as Suez, Danaher and GE Water & Process Technologies.