Water treatment company OriginClear entered into a definitive agreement to acquire Progressive Water Treatment for preferred stock that may be converted to common stock in three annual increments beginning 12 months from closing.
PWT designs and manufactures a complete line of water treatment systems for municipal, industrial and pure water applications.
Under the agreement, PWT will become a wholly owned subsidiary of OriginClear. PWT has forecast that its revenues will exceed $6 million in 2015.
This marks the first transaction in OriginClear’s corporate strategy to acquire leading US water treatment companies primarily focused on high-margin services. Management believes this will help OriginClear strengthen its market footprint in the high-growth water treatment industry.
With this transaction underway, OriginClear says it intends to continue to selectively seek out other companies that focus on customer solutions, not just the sale of their proprietary products.
Last month OriginClean entered the Chinese commercial market with its first commercial customer in Hong Kong and an order for a research system from Nanjing University.