Business
Thermal Energy Acquires Boilerroom Equipment Inc.
(via TheNewswire) Complementary product offering and increased distribution network presen...
About this update from Thermal Energy International Inc.
[{"type":"text","content":"Thermal Energy Acquires Boilerroom Equipment Inc.(via TheNewswire)\n \n \nComplementary product offering and increased distribution network present significant cross-selling opportunities\n\n \n \nOTTAWA, ONTARIO / TheNewswire / June 29, 2018 - Thermal Energy International Inc. (\"Thermal Energy\" or the \"Company\") (TSXV: TMG), a global provider of industrial and institutional energy efficiency solutions, today announced that it has acquired all of the outstanding shares of privately held Boilerroom Equipment Inc. (\"BEI\") based just outside of Pittsburgh PA. This acquisition is part of the Company's strategy to develop a broad portfolio of thermal energy efficiency solutions targeted at the industrial, institutional and commercial markets and become a unique one-stop-shop for all of its clients' thermal energy efficiency and heat recovery needs, whether they need heat recovery for thermal, electrical, drying, cooling, or other process needs.\n\n \n \nThe purchase price is USD 2.25 million, plus earn-out consideration of up to USD 350 thousand if certain growth and performance targets are achieved over the next three years. Thermal Energy has received a term loan in the principal amount of USD 2.25 million from BDC Capital Inc., a wholly owned subsidiary of the Business Development Bank of Canada to fund the transaction. \n\n \n \nBased in Export, Pennsylvania, BEI engineers and manufactures the HEATSPONGE(R) brand of best-in-class indirect contact heat recovery units for use in both commercial and industrial steam and hot water applications. \n\n \n \nThe acquisition of BEI is expected to provide Thermal Energy with the following immediate benefits:\n\n\n \n\n\n- Expanded complementary product offering to include indirect contact heat exchangers\n\n\n\n- Increased distribution network, providing access for all Thermal Energy's current offerings to over 40 independent reps covering the U.S. as well as an established and direct boiler OEM sales channel\n\n\n\n- Expansion into the much larger commercial buildings and hot water boilers markets \n\n\n\n- Proprietary, scalable automated proposal development software, \"BRUCE\"\n\n\n\n- Sales, marketing, engineering, and project management expertise and efficiencies with scalable operating platform\n\n\n\n- Vertical integration of an ASME code fabrication facility in the United Sta...