Business
Reacquisition of Northeast Florida Franchise
Reacquisition of Northeast Florida Franchise.
About this update from Water Intelligence Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 7532D\n Water Intelligence PLC\n 01 July 2021\n \n \n \n \n \n \n \n Water Intelligence plc \n \n \n Reacquisition of Northeast Florida Franchise\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 Northeast Florida franchise (\"Northeast Florida\") within the Group's American Leak Detection subsidiary (\"ALD\"). Northeast Florida is a significant franchise delivering water infrastructure solutions to three cities: Jacksonville, Daytona Beach and Gainsville. \n \n \n Financially, the acquisition will be earnings enhancing for shareholders. The purchase price of $2.75 million includes all assets to conduct operations including trucks and equipment. The purchase price is based on 2020 full-year results of approximately $2 million in sales and $0.5 million in adjusted profits. Northeast Florida has continued to grow during 1H 2021. The purchase price will be paid over four years. The Northeast 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. \n \n \n Demand is high for ALD water leak detection and repair services in this region due to a variety of factors such as the number of swimming pools, higher income levels and rainy weather. \n \n \n Strategically, the Northeast Florida reacquisition follows the April reacquisition of the Central Florida location. The two reacquisitions enable ALD to link corporate operations along the eastern part of Florida from Jacksonville in the northeast to fast-growing corporate operations in Orlando and sizeable Melbourne and Miami operations, to the south. This operational scale should contribute to both growth and efficiencies. In addition, today's reacquisition reinforces the corporate strategy of creating regional hubs to help grow both corporate and franchise operations and also to integrate UK-based Water Intelligence International's municipal offerings in the United States. \n \n The transaction today represents the fifth acquisition this half year, includin...