Water Intelligence PLC Reacquisition of West Covina, California Franchise (8824G)
July 24 2023 - 2:00AM
UK Regulatory
TIDMWATR
RNS Number : 8824G
Water Intelligence PLC
24 July 2023
Reacquisition of West Covina, California Franchise
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 is pleased to announce the
reacquisition of its franchise in West Covina, California
("Acquisition") within the Group's American Leak Detection ("ALD")
subsidiary.
Key terms of the Acquisition
The purchase price of $1.5 million in cash at closing includes
all assets required to conduct operations, including trucks and
equipment. The purchase price is based on the trailing twelve
months pro forma of $1.3 million in revenue and $0.3 million in
profit before tax, as well as total assets of $0.2 million. The
transaction is accretive for the Group's shareholders.
Strategic rationale for the Acquisition
West Covina is a suburb located near Los Angeles. The operation
is growing and expected to accelerate its trajectory because of
anticipated synergies with neighbouring operations. The Acquisition
reinforces the Group's strategy of establishing regional corporate
hubs in the US that fuel growth in adjacent corporate and franchise
locations. West of the Acquisition territory are several
significant franchises stretching from San Diego to Los Angeles.
East of the Acquisition territory are existing corporate operations
in San Bernardino and Palm Springs. Moreover, West Covina is
located close to the Group's manufacturing partners enabling
additional oversight as the Group commercializes products during H2
such as Residential Pulse for sewer diagnostics and IntelliDitch
for lining concrete water channels.
Executive Chairman, Dr. Patrick DeSouza commented: "We are
pleased with today's reacquisition. Most importantly, it is an
accretive transaction with plenty of scope for additional growth.
Moreover, the West Covina operation enables various synergies given
its strategic location in Southern California near various
franchise and corporate locations, as well as its capability to
help deliver on our product strategy given its proximity to our
manufacturing partner."
The information communicated in this announcement is inside
information for the purposes of Article 7 of Regulation
596/2014
Enquiries:
Water Intelligence plc
Patrick DeSouza, Executive Chairman Tel: +1 203 654 5426
WH Ireland Limited - NOMAD & Joint Tel: +44 (0)20 7220 1666
Broker
Hugh Morgan
James Bavister
RBC Capital Markets - Joint Broker Tel: +44 (0)20 7653 4000
Rupert Walford
Elizabeth Evans
Daniel Saveski
Dowgate Capital Ltd - Joint Broker Tel: +44 (0)20 3903 7715
Stephen Norcross
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END
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