Business
Xebec Expands Cleantech Service Network with Acquisition of Pennsylvania Based The Titus Company
Xebec Expands Cleantech Service Network with Acquisition of Pennsylvania Based The Titus Company.
About this update from Xebec Adsorption Inc.
[{"type":"text","content":"\n - Fifth acquisition in Xebec’s strategy to rapidly expand its cleantech service offering for renewable natural gas and hydrogen installations in North America - MONTREAL, Nov. 02, 2020 (GLOBE NEWSWIRE) -- Xebec Adsorption Inc. (TSXV: XBC) (“Xebec”), a global provider of clean energy solutions, is pleased to announce it has entered into an agreement effective October 30th, 2020, to acquire all of the outstanding shares of “The Titus Company” (Titus). Titus’ principals will remain with Titus after the acquisition to optimize their integration into Xebec’s Industrial Service and Support business and to grow the operation over the coming years. With this acquisition, Xebec’s Cleantech Service Network (CSN) coverage will increase to include Eastern Pennsylvania, Delaware and New Jersey. Total consideration payable by Xebec is approximately $8.0M, subject to certain holdbacks, adjustments and time-based payments. Titus had revenues of $12.3 million for FY2019 with an EBITDA margin of approximately 13.5%. Titus is on track and expected to achieve similar revenue and profitability for FY2020. As with other acquisitions, Xebec expects that Titus’ growth and profitability could be improved with product, sourcing and back-office synergies. “Over three decades ago I founded The Titus Company to support local Pennsylvania, New Jersey, and Delaware companies with their compressed air service needs. We are happy with what has been achieved to date and it’s time for the company to enter its next chapter. Titus’ legacy of superior capabilities in the compressed air industry will continue, and we will begin to support Xebec’s vision in renewable gases. I am thrilled to be handing off the company to a cause that can make the world a better and more sustainable place,” states Stephen Titus, Owner of The Titus Company. “Since I started at Titus in 2017, we have made great progress in growing the business and solidifying Titus’ leadership in the states we operate in. The renewable gas industry offers an exciting pathway to future growth as we look to retool and retrain our service technicians to work on renewable natural gas and hydrogen installations. I believe that we can achieve many synergies by collaborating with Xebec and having this relationship ...