Quebec water treatment technology company H2O Innovation acquires two firms based in New York State which specialize in the management of drinking water and wastewater treatment systems.
With this acquisition of the firms “JCO” and “Environmental Consultants”, H20 Innovation adds some 200 clients and the equivalent of CA 17 million in turnover in one of the largest regional markets in the United States in services and technologies water treatment.
“These two acquisitions will not only allow us to expand our platform in New York State, which is the 4e the most populous state in the United States, but also to provide a unique opportunity to deploy our expertise in technological processes in water treatment to several municipal and industrial customers, throughout the Hudson Valley region ” , indicates the President and CEO of H2O Innovation, Frédéric Dugré.
As for the cost of this double acquisition, H2O says the currently undisclosed transaction amount will be settled in part in cash – from the recent $ 55 million financing – and through the issuance of 1.1 million shares at a price of $ 2.37 each.
Listed on the TSX-Venture market, the shares of H2O Innovation gained nearly 3% to $ 2.50 on Wednesday after the morning announcement of this double acquisition in New York State.
H2O Innovation at a glance
Revenue (annualized as of Sep 30): 147.7 million
Workforce: 900 employees (Canada, United States, Spain, United Kingdom)
Market capitalization: 220 million (TSX-Venture)
Main shareholders: Investissement Québec (10.5%), Caisse de depot et placement (9.5%), Business Development Bank of Canada (BDC, 8%), François Dugré (co-founder, President and CEO, 3% of stocks and stock options), Richard Hoel (board member, 2.1%), Connor Clark & Lunn (Vancouver, 1.3%)
Sources: Refinitiv, H2O Innovation, TSX-Venture Exchange