Xebec Adsorption Inc. (TSXV: XBC) (“Xebec”), a
global provider of clean energy solutions is pleased to announce
that Xebec Holding USA Inc, a wholly-owned subsidiary of Xebec
Adsorption Inc., has entered into an agreement effective July 31st,
2020, to acquire all of the outstanding securities of Enerphase
Industrial Solutions, Inc. (doing business as “Air Flow”). Air
Flow’s principals will remain with Air Flow after the acquisition
to optimize their integration into Xebec’s industrial service and
support business and to grow the operation over the coming years.
Total consideration payable by Xebec is
approximately $6.0M, subject to certain holdbacks, adjustments and
time-based payments. Air Flow had revenues of approximately $10.1M
for the fiscal year ended December 31, 2019 and revenues are
estimated to grow organically to $11.5M in 2020 with an EBITDA
margin of approximately 10%. Xebec expects that Air Flow’s growth
and profitability could be improved with additional supply chain
and cost optimizations, product synergies and the back-office
expertise Xebec has built from prior acquisitions.
“When Xebec approached us, we saw a unique
opportunity to be part of a mission that was larger than us.
Climate change is a growing concern and I saw how our team and
experience in compressed air service could translate into being a
strong value add to help service and support Xebec’s upcoming
renewable natural gas and hydrogen systems. North Carolina is one
of the top 10 agriculture producing states which represents
significant potential for RNG projects. Air Flow is well positioned
with three points of presence to offer truly local support to
future dairy and hog farmers, municipalities, and industry,” states
B. Stanton Shelton, III, President and CEO, Air Flow.
Air Flow is a leading distributor and service
provider of compressed air equipment in North Carolina.
Incorporated in 1981, the company brings decades of industry
experience and has built long standing relationships with major
manufacturers and has developed a significant service footprint
through numerous equipment installations. Air Flow’s focus is on
preventative maintenance solutions, air energy system audits and
analysis, and timely machine rentals, and parts and service.
“As renewable natural gas and hydrogen adoption
continues, the need to support customers over the lifetime of their
installations grows. 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 we expect several more
acquisitions throughout the rest of the year,” says Dr. Prabhu Rao,
Chief Operating Officer, Xebec Adsorption Inc.
Related
links:https://www.xebecinc.com https://airflowinc.com/
For more information:Xebec
Adsorption Inc. Brandon Chow, Investor Relations Manager
bchow@xebecinc.com +1 450.979.8700 ext 5762
About Xebec Adsorption
Inc.Xebec is a global provider of gas generation,
purification and filtration solutions for the industrial, energy
and renewables marketplace. Well-positioned in the energy
transition space with proprietary technologies that transform raw
gases into clean sources of renewable energy, Xebec’s 1500+
customers range from small to multi-national corporations,
governments and municipalities looking to reduce their carbon
footprints. Headquartered in Montréal, Quebec, Canada, Xebec has
several Sales and Support offices in North America and Europe, as
well as two manufacturing facilities in Montréal and Shanghai.
Xebec trades on the TSX Venture Exchange under the symbol XBC. For
more information, www.xebecinc.com.
Cautionary Statement Neither
TSX Venture Exchange nor its Regulation Services Provider (as that
term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this
release. This news release contains forward-looking statements and
forward-looking information (together, “forward-looking
statements”) within the meaning of applicable securities laws. All
statements, other than statements of historical facts, are
forward-looking statements, and subject to risks and uncertainties.
Generally, forward-looking statements can be identified by the use
of terminology such as “plans”, “seeks”, “expects”, “estimates”,
“intends”, “anticipates”, “believes”, “could”, “might”, “likely” or
variations of such words, or statements that certain actions,
events or results “may”, “will”, “could”, “would”, “might”, “will
be taken”, “occur”, “be achieved” or other similar expressions.
Forward-looking statements, including statements concerning future
capital expenditures, revenues, expenses, earnings, economic
performance, indebtedness, financial condition, losses and future
prospects as well as the expectations of management of Xebec with
respect to information regarding the business and the expansion and
growth of Xebec operations, involve risks, uncertainties and other
factors that could cause actual results, performance, prospects and
opportunities to differ materially from those expressed or implied
by such forward-looking statements. Forward-looking statements are
subject to business and economic factors and uncertainties, and
other factors that could cause actual results to differ materially
from these forward-looking statements, including the relevant
assumptions and risks factors set out in Xebec's public documents,
including in the most recent annual management discussion and
analysis and annual information form, filed on SEDAR at
www.sedar.com. Furthermore, should one or more of the risks,
uncertainties or other factors materialize, or should underlying
assumptions prove incorrect, actual results may vary materially
from those described in forward-looking statements or information.
These risks, uncertainties and other factors include, among others,
the uncertain and unpredictable condition of global economy,
notably as a consequence of the Covid-19 pandemic, Xebec’s capacity
to generate revenue growth, the availability to Xebec of financing
and credit alternatives and access to capital, Xebec’s capacity to
meet all its other commitments and business plans, Xebec’s limited
number of customers, the potential loss of key employees, changes
in the use of proceeds relating to the loan, share price
volatility, and other factors. Although Xebec believes that the
assumptions and factors used in preparing the forward-looking
statements are reasonable, undue reliance should not be placed on
these statements, which only apply as of the date of this news
release, and no assurance can be given that such events will occur
in the disclosed times frames or at all. Except where required by
applicable law, Xebec disclaims any intention or obligation to
update or revise any forward-looking statement, whether as a result
of new information, future events or otherwise.
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