QUEBEC CITY, Apr. 12, 2022 (GLOBE NEWSWIRE) — (TSX: HEO) – H2O Innovation Inc. (“H2O Innovation” or the “Company”) is pleased to announce that a binding letter of intent has been entered into in connection with the acquisition of the business of Leader Evaporator Co., Inc. (“Leader”). Leader has been selling maple syrup equipment and products for over 130 years to maple producers located primarily in the United States. The brand is positioned as the perfect alliance between tradition and quality.
H2O Innovation, through its maple syrup business line, has already been a major player in the maple syrup industry for the past 30 years, manufacturing and selling equipment for the production of maple syrup to producers located both in Canada and abroad. in the USA. The Company stands out for its ability to develop and manufacture innovative solutions and products, thanks to its expertise in membrane filtration, in its 81,390 sq.2 located in Ham-Nord, Quebec. H’s maple business line2O Innovation was also among the first in the industry to introduce H technology.2O-Smartrek, providing precise intelligence to optimize maple sap collection, remote monitoring and control of a complete maple syrup production.
This transaction should allow H2O Innovation to increase its market share in the maple syrup industry, mainly in the United States, to solidify its position as a manufacturer of maple products and equipment, and to expand its manufacturing capacities with an additional facility of 103,780 ft2 located in the city of Swanton, Vermont. Moreover, H2O Innovation will add 53 distributors and resellers to its current distribution network of nearly 50 distributors. By this transaction, H2O Innovation will inherit the expertise, talent and manufacturing know-how of more than 50 employees working at the Swanton plant.
The transaction is expected to close by the 1er July 2022 and is subject to customary closing conditions for this type of transaction. The transaction will be financed from the Company’s available cash and/or existing credit facilities.
“This transaction fits perfectly into the maple business line of H2O Innovation as we already foresee multiple sales synergies. We envision partnering with Leader’s customers to continue to build a valuable business that honors Leader’s heritage and thus become one of the most important players in the maple syrup industry. The transaction will also help solidify customer loyalty and create additional recurring revenue. The acquisition is expected to increase revenues from maple syrup equipment and products by approximately 60% to 70% and allow H2O Innovation to expand its manufacturing capabilities to meet growing demand from the maple syrup industry,” said Frédéric Dugré, President and CEO of H2O Innovation.
“We are very pleased with this transaction, as it capitalizes on Leader’s historic heritage of quality and innovation, while positioning Leader as a truly global brand, and providing it with the resources and capability to become the leader of the maple syrup market within a few years. The synergies between the Leader and H product lines2O Innovation and the harmony of our corporate cultures make it a perfect complement. And as the maple industry prepares for a major growth cycle, this transaction puts Leader and H2O Innovation on the way to a very strong decade of growth”, added Jeff Smith, president of Leader.
Forward-looking statements
Certain statements in this press release relating to the business and operations of H2O Innovation as well as in other communications published by the Company describing more generally the objectives, projections, estimates, expectations or forecasts of management may constitute forward-looking statements within the meaning of securities legislation. These forward-looking statements include, but are not limited to, the completion of the transaction described herein, the effects of integrating the acquired business and the ability to realize projected synergies. Forward-looking statements relate to analysis and other information based on forecasts of future results, performance and achievements as well as estimates of amounts that cannot currently be determined. These forward-looking statements, which are based on management’s current expectations, are subject to certain known and unknown risks and uncertainties that could cause the Company’s current and future results, performance and achievements to differ materially from results indicated by these forward-looking statements. These risks and uncertainties are described in the Company’s Annual Information Form dated September 27, 2021 available on SEDAR (www.sedar.com).
About H.2O Innovation
Innovation is in our name and it is what drives the organization. H2O Innovation is a company that offers complete water treatment solutions and is focused on providing the best technologies and services to its customers. The Company’s activities are based on three pillars: (i) Water Treatment Technologies and Services (WTS) applies membrane technologies and engineering expertise to provide water treatment equipment and services, wastewater wastewater and water reuse to municipal and industrial customers, ii) Specialty Products (SP) is a collection of businesses that manufacture and supply a full line of specialty chemicals, consumables and specialty products for the global water treatment industry, and iii) operation and maintenance (O&M) provides contracted operations and associated services for water and wastewater treatment systems. Through innovation, we strive to simplify water treatment. For more information, visit www.h2oinnovation.com.
Source :
H2O Innovation Inc.
www.h2oinnovation.com
Information :
Marc Blanchet
+1 418-688-0170
[email protected]
