Business
Reacquisition of Central Florida Franchise
Reacquisition of Central Florida Franchise.
About this update from Water Intelligence Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 7529U\n Water Intelligence PLC\n 08 April 2021\n \n \n \n \n \n \n \n Water Intelligence plc\n \n \n Reacquisition of Central Florida Franchise\n \n \n and Director Appointment\n \n \n \n \n \n Water Intelligence plc (AIM: WATR.L) (\"Water Intelligence\" or \"Group\"), a leading multinational provider of precision, minimally-invasive leak detection and remediation solutions for both potable and non-potable water \n is pleased to announce that it has reacquired its Central Florida franchise (\"Central Florida\") within the Group's American Leak Detection subsidiary (\"ALD\"). \n \n \n A few days ago, Water Intelligence communicated that President Biden's American Jobs Plan would significantly increase market demand for water infrastructure solutions and that the Group would accelerate its strategic growth plan to take advantage of the opportunity. Today's franchise reacquisition should be seen in that context as it provides greater scale to corporate operations in eastern Florida, a geography with high demand for water infrastructure solutions.\n \n \n Strategically, the Central Florida reacquisition will enable ALD to link operations along the eastern part of Florida from its Central Florida location to fast-growing corporate operations in Orlando, to the east, and sizeable Melbourne and Miami operations, to the south. As noted above, demand is high for ALD water leak detection and repair offerings in this geography because of various factors ranging from the number of swimming pools to level of disposable income to rainy weather. In linking the above four eastern Florida operations, ALD expects to achieve even faster growth through fulfilling pent-up demand and creating operating efficiencies from scale. \n \n \n Financially, the purchase price is fully accretive to shareholder value. The purchase price of $0.66 million includes all assets to conduct operations including trucks and equipment. The purchase price is based on 2020 full-year results of approximately $0.66 million in sales and $0.15 million in adjusted profits. The purchase price is to be paid within nine months. The Central Florida franchisee leadership team will remain in place to run the operation and will expand management breadth for ALD as members of the corporate organization...