- Xebec Adsorption (XBC) subsidiary, Xebec Holding USA, will acquire Enerphase Industrial Solutions, which is doing business as Air Flow
- Air Flow is a leading distributor and service provider of compressed air equipment in North Carolina
- The acquisition will further expand Xebec’s network of renewable natural gas and hydrogen installation service providers in North America
- The company will pay approximately C$6 million in total consideration for the acquisition of Air Flow
- Xebec Adsorption (XBC) is up 5.88 per cent and is currently trading at $4.68 per share
Xebec Adsorption (XBC) subsidiary, Xebec Holding USA, will acquire Enerphase Industrial Solutions, which is doing business as Air Flow.
Based in North Carolina, Air Flow is a leading distributor and service provider of compressed air equipment. Incorporation into Xebec Adsorption’s corporate structure will see Air Flow adjust its services to renewable natural gas (RNG) and hydrogen systems.
As such, this acquisition will further expand Xebec’s network of RNG and hydrogen installation service providers in North America.
Air Flow generated approximately C$10.1 million in revenues during 2019, with revenues expected to grow to $11.5 million this year. Xebec intends to improve Air Flow’s growth and profitability through additional supply chain and cost optimisations, product synergies, and back-office expertise.
The company will pay approximately $6 million in total consideration for the acquisition of Air Flow. However, this is subject to certain holdbacks, adjustments, and time-based payments.
Xebec’s Chief Operating Officer, Dr Prabhu Rao, commented on the company’s impending acquisition, and the benefits it will provide.
“Air Flow is yet another example of an acquisition that is immediately accretive to Xebec’s earnings and the service team at Air Flow can be trained to also work with renewable gases.
“Growing our service footprint is key to the Xebec’s strategy to sell more Cleantech systems, better support our customers, and capture more aftermarket business.
“I’m happy to see the continued execution by our team, and expect several more acquisitions throughout the rest of the year,” he said.
Xebec Adsorption (XBC) is up 5.88 per cent and is trading at $4.68 per share at 2:44pm EDT.
