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REG - Water Intelligence - Acquisition of Plumbing Company

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RNS Number : 1090P  Water Intelligence PLC  16 June 2022

Water Intelligence plc

("Water Intelligence" or "Group")

Acquisition of Connecticut and New York Plumbing Company

Water Intelligence plc (AIM: WATR.L), a leading multinational provider of
precision, minimally-invasive leak detection and remediation solutions for
both potable and non-potable water is pleased to advance its 2022 growth plan
with the acquisition of Shanahan Plumbing LLC, a plumbing company with
operations in both Connecticut and New York ("Acquisition").

Strategy: The Acquisition builds upon the Group's growing American Leak
Detection ("ALD") operations in Connecticut and New York in two ways. First,
the Group's growth strategy includes increasing its range of solutions for its
residential and B2B customers, such as insurance companies and property
developers, from minimally-invasive water leak detection to repair. The
Group's success with its 2021 PlumbRight acquisition to expand its Louisville,
Kentucky ALD operation provides an operating roadmap for today's transaction.
Second, in an inflationary environment, operating scale is of even greater
importance. While most of ALD's 150+ locations have been hiring plumbers
incrementally to staff more repair jobs, today's acquisition enables the Group
to scale faster. Combined with the Group's Salesforce CRM capabilities for
scheduling and dispatch efficiency, vertical integration with plumbing
operations allows ALD to reach a wider breadth of customers with an increased
range of solutions.

Terms: The purchase price of $0.8 million in cash includes all assets required
to conduct operations, including trucks, equipment and licenses. The purchase
price is based on Shanahan Plumbing's 2021 Statement of Income of $1.9 million
in revenue and $0.2 million in adjusted profit before tax.

Executive Chairman, Dr. Patrick DeSouza commented: "As noted in our recent
communication regarding the Group's 2021 results, our 2022 outlook includes
continuing to execute on corporate development opportunities. After four
strong corporate finance transactions over the last eighteen months, the Group
has the balance sheet to support our growth strategy. Today's transaction puts
capital to work in ways that not only reinforce our long-term strategy but
also address short-run priorities for driving scale and operating efficiencies
to offset inflationary pressures. Given strong market demand for our water and
wastewater infrastructure solutions, we will continue to execute our business
plan."

This announcement contains inside information for the purposes of Article 7 of
the UK version of Regulation (EU) No 596/2014 which is part of UK law by
virtue of the European Union (Withdrawal) Act 2018, as amended ("MAR"). Upon
the publication of this announcement via a Regulatory Information Service,
this inside information is now considered to be in the public domain.

Enquiries:

 Water Intelligence plc
 Patrick DeSouza, Executive Chairman                  Tel: +1 203 654 5426
 RBC Capital Markets - Joint Broker                   Tel: +44 (0)20 7653 4000
 Jill Li

 Daniel Saveski
 WH Ireland Limited - NOMAD & Joint Broker            Tel: +44 (0)20 7220 1666
 Chris Hardie
 Ben Good
 Dowgate Capital Ltd - Joint Broker                               Tel:  +44 (0)20 3903 7715

Stephen Norcross

 

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