Business
Reacquisition of Las Vegas and Phoenix Franchises
Reacquisition of Las Vegas and Phoenix Franchises.
About this update from Water Intelligence Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 5447E\n Water Intelligence PLC\n 08 July 2021\n \n \n \n \n \n \n \n Water Intelligence plc\n \n \n Reacquisition of Las Vegas and Phoenix Franchises\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 two major franchises - Las Vegas and Phoenix - within the Group's American Leak Detection subsidiary (\"ALD\"). Today's set of acquisitions is the largest that the Group has executed to date and reinforces its strong growth trajectory both financially and operationally. \n \n \n Financially, the acquisition will be earnings enhancing for shareholders. The combined purchase price of $10.3 million will be paid over four years and includes all assets to conduct operations including trucks and equipment. The purchase price is based on combined 2020 full-year results of approximately $5.75 million in sales and $1.6 million in adjusted profits. Both locations are continuing to grow in 1H 2021. Given the Group's available cash reserves and bank facilities, the Group has sufficient capital to fund the acquisitions and execute on its growth objectives.\n \n \n The franchise leadership team, led by Keith Ozawa, will remain in place to run the operation and to provide senior leadership in helping the Group execute its growth plan. The purchase price assumes a minimum level of profits for the next three-years and provides stock options as part of the transaction for 75,000 ordinary shares, at the current market price, in order to align incentives. These options vest in full on the fourth anniversary of grant. \n \n \n Water Intelligence has strong market demand for its solutions. The Group is seeking to add to its supply of trained technicians across the United States to address customer demand, especially from its insurance channel, and the resulting backlog of work. Mr. Ozawa has been involved over the last two years in assisting the franchise System secure more trained technicians. He will work closely with John Spenard, the Group's newly appointed Chief People Officer. \n \n \n Demand in Las Vegas and Phoenix is especially strong for ALD ...