Water Intelligence PLC Reacquisition of Tucson, Arizona Franchise (0797C)
June 13 2019 - 1:01AM
UK Regulatory
TIDMWATR
RNS Number : 0797C
Water Intelligence PLC
13 June 2019
Water Intelligence Plc
Reacquisition of Tucson, Arizona Franchise
Water Intelligence plc, a leading provider of minimally-invasive
leak detection and remediation services for residential, commercial
and municipal customers, is pleased to announce the reacquisition
of its Tucson, Arizona franchise ("Tucson") within the Group's
American Leak Detection subsidiary ("ALD"). Tucson is a significant
reacquisition that enables the Group to leverage an already strong
business to add further scale to Water Intelligence, both
operationally and financially.
The demographics and economy of Tucson are fast growing and a
prime area for accelerated growth for both the Group's American
Leak Detection and Water Intelligence International businesses.
Water issues are proliferating throughout the southwest of the
United States. With a regional corporate office in Tucson, there is
an opportunity also to significantly grow various neighboring
franchise locations enhancing royalty income.
The current franchise team will be staying in place to grow the
business faster with added working capital from ALD. Moreover,
because the current team has experience with sewer and wastewater
solutions, Tucson shall be one of the introductory sites in the US
for deployment of Water Intelligence International's proprietary
Orca product.
For full year 2018, Tucson generated approximately $0.78 million
of revenue and $0.15 million of net income. Assets acquired are
approximately $0.1 million as of December 31, 2018. The purchase
price is $0.7 million in cash to be paid over five years with an
additional $0.05 million payable should the territory achieve
$0.21m of net income for 2019. Tucson has shown continued growth
during 2019 prior to the reacquisition. The transaction is expected
to be immediately accretive to earnings and purchase price payments
can be made from current cash.
Executive Chairman, Dr. Patrick DeSouza, commented: "We continue
to deliver financially and operationally on our strategic plan
which is reaffirmed in our annual report. We appreciate that our
acceleration is made possible by the confidence that our current
institutional and individual investors on both sides of the
Atlantic have shown us by all increasing their commitments during
our May investment round. We aim high and we aim to deliver a
growth trajectory that differentiates us in the marketplace.
Solutions to water infrastructure problems are needed around the
world. We have an exciting global opportunity ahead with a market
less subject to the volatility of politics."
Enquiries:
Water Intelligence plc Tel: +1 203 654 5426
Patrick DeSouza, Executive Chairman
Adrian Hargrave, VP Corporate Development
WH Ireland Limited - NOMAD & Broker Tel: +44 (0) 207 220
Adrian Hadden 1666
James Sinclair-Ford
Matthew Chan
The information communicated in this announcement is inside
information for the purposes of Article 7 of Regulation
596/2014
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END
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