Business
Reacquisition of Orlando, Florida Franchise
Reacquisition of Orlando, Florida Franchise.
About this update from Water Intelligence Plc
[{"type":"text","content":"\n \nRNS Number : 2559U Water Intelligence PLC 28 March 2019 \n\n \n \nWater Intelligence Plc\n \nReacquisition of Orlando, Florida Franchise\n \nWater Intelligence plc (the \"Company\" or \"Group\"), a leading provider of minimally-invasive leak detection and remediation services for residential, commercial and municipal customers, is pleased to announce the reacquisition of its Orlando, Florida franchise (\"Orlando\") within the Group's American Leak Detection subsidiary (\"ALD\"). Orlando is a significant reacquisition that enables the Group to leverage an already strong business to add scale to Water Intelligence, both financially and operationally.\n \nFor full year 2018, Orlando generated approximately $1.02 million of revenue and $0.2 million of pre-tax profits. The transaction is expected to be immediately accretive to earnings. Assets acquired are approximately $0.3 million as of December 31, 2018. The purchase price is $1.17 million in cash to be paid in three payments by March 2020; such payments can be met from current cash. \n \nThe demographics and economy of Orlando are fast growing and a prime area for accelerated growth for both our American Leak Detection and Water Intelligence International businesses. With a variety of commercial customers from hotels and resorts to theme parks, water leak issues are everywhere. Our national accounts - insurance and property management - have significant demand for Water Intelligence solutions in Orlando. \n \nAs noted, Orlando is one of the bigger cities in the southeast United States. As a strategic matter, the acquisition enables ALD corporate operations to set up another regional office in Florida to support the growth of the ALD business throughout the southeast United States. Already, ALD has fast-growing corporate operations in Miami / South Florida that have grown from approximately $250,000 in sales to over $2 million in sales within four years. Orlando is in an even better location from which to achieve similar success. The city has the business attributes to support a strong growth path. The Group, moreover, has an execution advantage in Orlando given that corporate operations will start from a bigger base enabling ready scale. Together...