REG - Water Intelligence - Reacquisition of West Covina, California Franchise

Water IntelligenceAnnouncement

24/07/2023 07:00

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RNS Number : 8824G  Water Intelligence PLC  24 July 2023

 

 

Reacquisition of West Covina, California Franchise

Water Intelligence plc (AIM: WATR.L) ("Water Intelligence" or "Group"), a
leading multinational provider of precision, minimally-invasive leak detection
and remediation solutions for both potable and non-potable water is pleased to
announce the reacquisition of its franchise in West Covina, California
("Acquisition") within the Group's American Leak Detection ("ALD")
subsidiary.

Key terms of the Acquisition

The purchase price of $1.5 million in cash at closing includes all assets
required to conduct operations, including trucks and equipment. The purchase
price is based on the trailing twelve months pro forma of $1.3 million in
revenue and $0.3 million in profit before tax, as well as total assets of $0.2
million.  The transaction is accretive for the Group's shareholders.

Strategic rationale for the Acquisition

West Covina is a suburb located near Los Angeles. The operation is growing and
expected to accelerate its trajectory because of anticipated synergies with
neighbouring operations. The Acquisition reinforces the Group's strategy of
establishing regional corporate hubs in the US that fuel growth in adjacent
corporate and franchise locations. West of the Acquisition territory are
several significant franchises stretching from San Diego to Los Angeles.
East of the Acquisition territory are existing corporate operations in San
Bernardino and Palm Springs. Moreover, West Covina is located close to the
Group's manufacturing partners enabling additional oversight as the Group
commercializes products during H2 such as Residential Pulse for sewer
diagnostics and IntelliDitch for lining concrete water channels.

Executive Chairman, Dr. Patrick DeSouza commented: "We are pleased with
today's reacquisition.  Most importantly, it is an accretive transaction with
plenty of scope for additional growth.  Moreover, the West Covina operation
enables various synergies given its strategic location in Southern California
near various franchise and corporate locations, as well as its capability to
help deliver on our product strategy given its proximity to our manufacturing
partner."

 

The information communicated in this announcement is inside information for
the purposes of Article 7 of Regulation 596/2014

Enquiries:

 Water Intelligence plc
 Patrick DeSouza, Executive Chairman            Tel: +1 203 654 5426

 WH Ireland Limited - NOMAD & Joint Broker      Tel: +44 (0)20 7220 1666
 Hugh Morgan

 James Bavister

 RBC Capital Markets - Joint Broker             Tel: +44 (0)20 7653 4000
 Rupert Walford

 Elizabeth Evans

 Daniel Saveski

 Dowgate Capital Ltd - Joint Broker             Tel:  +44 (0)20 3903 7715
 Stephen Norcross

 

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