Xebec Acquires Ontario-based Air And Gas Service Company - First step taken in Xebec’s acquisition strategy to provide Canada-wide service and operational support for its Industrial and CleanTech Business -
Xebec is pleased to announce that it has entered into an arm’s length transactional agreement on December 6th, 2018, to acquire all of the outstanding shares of Compressed Air International Inc. (“CAI”) for a purchase price of C$2,200,000, subject to customary closing adjustments, effective on January 1, 2019. CAI’s principals will remain with CAI after the acquisition to optimize CAI’s integration in Xebec’s industrial compressed air treatment business.
“This acquisition will set Xebec on a path of significant growth in its industrial compressed air treatment business, while also providing future Canada-wide service, support and operations capabilities for its cleantech and renewable gas segment. Being able to provide local service, maintenance and operational support to our cleantech customers in Ontario, especially biogas upgrading customers, is a critical component to our value proposition. To be worry-free is important to customers, and knowing that experienced local service and support is available delivers that peace of mind.” – Kurt Sorschak, President and CEO, Xebec Adsorption Inc
CAI is a distributor and full-service supplier of industrial compressed air and gas products with locations in Woodbridge and Guelph, Ontario. In business for 20 years, CAI offers an extensive range of compressors, genuine and OEM-equivalent compressor parts, compressed adsorption and refrigerant air dryers, filtration products, emergency and preventative maintenance service as well as complete installation and service packages.
Xebec’s industrial products segment has long been a solid contributor to the overall growth and profitability of the company, generating a significant amount of recurring revenue through the sale of parts and services. This acquisition represents a first transaction of a series of potential mergers and acquisitions opportunities involving potential targets in the industrial business segments as previously announced in the press release of the company dated November 7, 2018 (see related link below). Xebec aims to become a leading Canadian industrial air and gas treatment business, while also offering service and support capabilities for nation-wide biogas to renewable natural gas projects.
Xebec expects that organic growth of its industrial products division in combination with CAI’s four year average revenues of $4 million will lead to a doubling of division revenues in 2019 to about $12 to $13 million, constituting about 30% of overall company revenues. Related links: https://www.xebecinc.com/investor-press-releases-details.php?id=312 https://www.xebecinc.com https://ca-intl.com