- H2O Innovation (HEO) has acquired JCO Inc. and Environmental Consultants LLC, two water services providers based in New York State
- The acquisitions will allow the company to grow its operation and maintenance (O&M) business line
- JCO and EC both operate numerous membrane plants that may benefit from the specialty chemicals of H2O Innovation, which allow membrane water treatment facility to run longer without cleaning
- H2O Innovation is a complete water solutions company focused on providing best-in-class technologies and services to its customers
- Shares in H2O Innovation (HEO) are up 1.24 per cent, trading at $2.45 per share
H2O Innovation (HEO) has acquired JCO Inc. and Environmental Consultants LLC, two water services providers based in New York State.
JCO and Environmental Consultants (EC) offer complete operation, maintenance, and management services to municipal and industrial water and wastewater clients in the Hudson Valley.
The acquisition complements H2O Innovation’s current business activities in the northwestern United States and will allow the company to grow its operation and maintenance (O&M) business line.
Industrial streams are often more complex to treat, the company noted in its press release, making these acquisitions especially important as they should generate new business opportunities in the industrial market.
Of their combined nearly 200 customers, JCO and EC both operate numerous membrane plants that may benefit from the specialty chemicals of H2O Innovation, which allow the membrane water treatment facilities to run longer without cleaning, thus contributing to lower operating expenses.
Frédéric Dugré, president and CEO of H2O Innovation, commented on the acquisitions.
“We foresee multiple sales synergies between our different business lines, including JCO and EC, which will contribute to solidify customer retention, thus recurring revenues,” he said.
“Financially,” added Mr. Dugré, “both transactions are expected to be immediately accretive to H2O Innovation’s net earnings and EBITDA. On a pro-forma basis, these acquisitions are bringing the corporation one step closer to its EBITDA target set in the 3-year strategic plan.”
H2O could not disclose the purchase price for the acquisitions for competitive reasons but announced that it would issue 1,107,733 common shares at $2.375 per share.
H2O Innovation is a complete water solutions company focused on providing best-in-class technologies and services to its customers.
Shares in H2O Innovation (HEO) are up 1.24 per cent, trading at $2.45 per share as of 9:30 am EST.
