Business
Reacquisition of San Jose, California Franchise
Reacquisition of San Jose, California Franchise.
About this update from Water Intelligence Plc
[{"type":"text","content":"\n \n \n RNS Number : 6041O\n Water Intelligence PLC\n 02 June 2020\n \n \n \n \n \n \n Water Intelligence plc\n \n \n \n \n \n Reacquisition of San Jose, California Franchise\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 the reacquisition of its San Jose, California franchise (\"San Jose\") within the Group's American Leak Detection subsidiary (\"ALD\"). \n \n \n San Jose is the second significant reacquisition that the Group has executed during the second quarter while navigating the Covid-19 crisis. The first one - Minneapolis - provides a regional corporate base in the Upper Midwest, where the Group has been successful in also cross-selling municipal leak detection solutions from its UK-based Water Intelligence International operations. The reacquisition of San Jose, meanwhile, is exceptionally strategic in that it enables the Group to have a regional corporate base in Silicon Valley. \n \n \n As discussed below, the acquisition is accretive to shareholder value and builds on a long-term growth strategy that over the last five years has delivered compounded annual growth of 35% in terms of revenue and 33% in terms of profit before taxes. ALD operates in 46 states of the United States and generates over $125 million in sales to third parties. Its solutions are delivered by franchise locations and corporate locations operating under the same brand. As part of its long-run growth strategy, the Group seeks to reinforce ALD's brand leadership across the United States through reacquisitions of select franchises and the establishment of regional corporate operations that reinforce and fuel growth in the franchise System.\n \n \n A corporate presence in Silicon Valley will enable the Group to advance its innovation roadmap and to build on strong R&D relationships that the Group has at Stanford University. Corporate operations will also reinforce the growth of two already successful, multi-million dollar franchises in the San Francisco and Berkeley geographies of the Bay Area. \n \n \n Financially, for full-year 2019, San Jose franchise operations generated approximately $0.7 millio...