Xebec Adsorption Inc. (TSX: XBC) (“Xebec”), a
global provider of clean energy solutions, is pleased to announce
today that it has closed the acquisition of all the outstanding
shares of Colorado-based UECompression (“UEC”). Founded in 1983,
UEC is a premier designer and builder of custom air and gas
compressor solutions for power generation, industrial and energy
applications.
The acquisition of UEC provides Xebec with a
cost-effective and timely pathway towards expanding production
capacity five-fold for standardized renewable gas systems while
supporting UEC’s legacy business as the operation continues its
energy transition. In addition, Xebec’s global manufacturing
footprint is further optimized by bringing European gas generation
products such as Hy.GEN to the U.S. and focuses UEC’s facility on
containerized and skid-mounted renewable energy systems.
Furthermore, the acquisition increases the Cleantech Service
Network coverage by six states (Montana, Wyoming, Colorado, North
& South Dakota and Nebraska) to meet the increasing need for
local service and support as the demand for standardized RNG and
hydrogen systems accelerates.
Xebec expects that with limited changes to
operations it can use UEC’s excess capacity to produce
approximately 150 to 190 containerized BGX Biostream™ (“Biostream”)
biogas upgrading and Hy.GEN hydrogen units per year in North
America. The new capacity from UEC adds to recent capacity
increases in Xebec’s Canadian manufacturing facility.
“UEC helps Xebec solidify its position as a
leading renewable gas player by adding a 100,000 sq. foot
manufacturing facility in the U.S. With this acquisition, we are
responding to the accelerating energy transition and the associated
interest in containerized RNG and hydrogen systems. Furthermore,
UEC’s existing compression expertise in hydrogen will become
increasingly relevant as the hydrogen economy develops. The
acquisition will also help us in fully complying with current and
evolving needs for local sourcing,” said Kurt Sorschak, Chairman,
President and CEO, Xebec Adsorption Inc.
The total consideration for the acquisition of
the outstanding shares of UEC is of USD $8 million (CAD $9.9
million) and is subject to certain holdbacks and adjustments. On a
standalone basis, UEC is expected to have unaudited revenues of
approximately USD $35.0 million (CAD $43.3 million) for 2021. With
the introduction of containerized renewable natural gas and
hydrogen systems and leveraging the Cleantech Service Network to
support UEC’s and Xebec’s installed equipment base, Xebec expects
to see significant growth for this operation over the coming
years.
Significant capacity increase to support the growing
U.S. animal manure RNG market
According to the United States Department of
Agriculture and National Pork Producers Council, there are
approximately 92,000 active dairy and hog farms in the U.S. The
American Biogas Council estimates that approximately 8,574 of these
farms are primed for biogas and renewable natural gas production
with more than 98 farms already producing RNG for the local
transportation market.
Xebec is focused on serving animal manure-based
projects because of their ability to reduce emissions from
agriculture, support local communities and recycle nutrients.
Biostream is well positioned as a market leading solution for
animal livestock operations as showcased with orders from top U.S.
dairy developers which include an initial 18-unit order from the
Brightmark and Chevron RNG partnership.
Related
links:https://www.xebecinc.com
Media Inquiries:Public Relations for
XebecVictor Henriquez, Senior
Partnervictor@publicsc.com+1 514.377.1102
Investor Relations:Xebec
Adsorption Inc.Brandon Chow, Director, Investor
Relationsbchow@xebecinc.com+1 450.979.8700 ext 5762
About Xebec Adsorption
Inc.Xebec is a global provider of clean energy solutions
for renewable and low carbon gases used in energy, mobility and
industrial applications. The company specializes in deploying a
portfolio of proprietary technologies for the distributed
production of hydrogen, renewable natural gas, oxygen and nitrogen.
By focusing on environmentally responsible gas generation, Xebec
has helped thousands of customers around the world reduce their
carbon footprints and operating costs. Headquartered in Québec,
Canada, Xebec has a worldwide presence with seven manufacturing
facilities, thirteen Cleantech Service Centers and five sales
offices spanning over four continents. Xebec trades on the Toronto
Stock Exchange under the symbol (TSX: XBC). For more
information, xebecinc.com.
Cautionary Statement This press
release contains forward-looking statements within the meaning of
applicable Canadian securities law. These statements relate to
future events or future performance and reflect the expectation of
Management regarding the growth, results of operations, performance
and business prospects and opportunities of the Corporation or its
industry. Forward-looking statements typically contain words such
as “believes”, “expects”, “anticipates”, “continues”, “could”,
“indicates”, “plans”, “will”, “intends”, “may”, “projects”,
“schedules”, “would” or similar expressions suggesting future
outcomes or events, although not all forward-looking statements
contain these identifying words. Examples of such statements
include, but are not limited to, statements concerning: expected
revenues of UEC for 2021; (ii) expansion of production capacity of
150 to 190 BGX Biostream™ units; and (iii) production of Hy.GEN
units in the U.S.
These statements are neither promises nor
guarantees but involve known and unknown risks and uncertainties
that may cause the Company’s actual results, level of activity or
performance to be materially different from any future results,
levels of activity or performance expressed in or implied by these
forward-looking statements. These risks include, generally, risks
related to the ability of the Corporation to execute its strategy,
operating results, purchasing third party supplies for key
materials and components in a timely and cost effective basis,
industry and products, technology, competition, ability to attract
and retain qualified personnel, ability to manage successfully the
anticipated expansion of our operations, the economy, the
sufficiency of insurance and other factors which are discussed in
greater details in the most recent quarterly management discussion
ana analysis (“MD&A”) and in the Annual Information Form of the
Corporation filed on SEDAR at www.sedar.com.
Forward-looking statements contained herein are
based on a number of assumptions believed by the Corporation to be
reasonable as at the date of this press release, including, without
limitations, assumptions about trends in certain market segments,
the economic climate generally, the pace and outcome of
technological development, the identity and expected actions of
competitors and customers, the value of the Canadian dollar and of
foreign currency fluctuations, interest rates, the anticipated
margins under new contracts awards, the state of the Corporation’s
current backlog, the regulatory environment, and the procurement of
key material and components of products. If these assumptions prove
to be inaccurate, the Corporation’s actual results may differ
materially from those expressed or implied in the forward-looking
statements. The forward-looking statements contained herein are
made as of the date of this press release and are expressly
qualified in their entirety by this cautionary statement. Except to
the extent required by law, the Company undertakes no obligation to
publicly update or revise any forward-looking statements contained
herein. Readers should not place undue reliance on forward looking
statements.
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