Business
Reacquisition of South Oregon Franchise
Reacquisition of South Oregon Franchise.
About this update from Water Intelligence Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 1200U\n Water Intelligence PLC\n 01 December 2021\n \n \n \n \n \n Reacquisition of South Oregon Franchise\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 South Oregon franchise (the \"Acquisition\") within the Group's American Leak Detection subsidiary (\"ALD\"). Today's acquisition accelerates the Group's strong growth trajectory by adding scale to its regional hub of corporate operations in the northwest United States; a territory where green economy solutions are in high demand.\n \n \n Key terms of the Acquisition \n \n \n The purchase price of $1.38 million in cash will be paid over the next twelve months and includes all assets required to conduct operations, including trucks and equipment. The purchase price is based on a pro forma revenue of $1.15 million and $0.25 million in profit before tax for full year 2021. The territory had $0.25 million in gross assets as of 31 October 2021. The acquisition will be earnings accretive for \n Water Intelligence \n shareholders. \n \n \n Strategic rationale for the Acquisition\n \n \n The Acquisition reinforces the Group's strategy of establishing regional corporate hubs in the US with scale to accelerate growth in nearby corporate and franchise locations. With respect to the Northwest, the growth objectives for the regional hub were announced with the acquisition of the Seattle franchise in January 2021: (i) integrate corporate operations to the south with Portland, Oregon and add efficiencies of scale; (ii) open a new corporate location in Vancouver, Canada to the north; and (iii) open the US headquarters for UK-based Water Intelligence International to deliver a broader range of municipal solutions to take advantage of the expected increase in infrastructure spending. \n \n \n The Group is on-track with meeting these objectives and with today's acquisition of South Oregon, expects to advance them further by: (i) increasing operating efficiencies by extending Portland's operations further south; (ii) integrating a South Oregon franchise team that has worked seamlessly with the...