Pure Technologies has entered into an agreement to acquire the business of Wachs Valve and Hydrant Services, a privately held company operating as Wachs Water Services.
Headquartered in Buffalo Grove, Illinois, Wachs Water provides flow control maintenance and support, leak detection, and related asset management services to the water sector in the US.
The total purchase price is $18.5 million, consisting of $13.5 million in cash and $5 million in common shares of Pure (totaling 878,640 shares), to be issued in equal tranches on the 6-month, 12-month, and 18-month anniversaries of closing the transaction.
Closing is expected to occur early in the second quarter of 2015. The purchase price includes $3.5 million in net working capital.
The acquisition will diversify Pure’s business in the US, broadens its client base especially in the small- and medium-sized utility space, and provide complementary revenue streams in related pipeline management activities, says Jack Elliott, Pure president and CEO.
In September 2014 Pure Technologies entered into an agreement to acquire the oil and gas pipeline inspection services business and related assets of Hunter McDonnell Pipeline Services and its affiliated companies for $8 million.