REG - Water Intelligence - Reacquisition of Tucson, Arizona Franchise

Water IntelligenceAnnouncement

13/06/2019 07:06

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           
Patrick DeSouza, Executive Chairman
Adrian Hargrave, VP Corporate Development
 


Tel: +1 203 654 5426
 




WH Ireland Limited - NOMAD & Broker
Adrian Hadden
James Sinclair-Ford
Matthew Chan


Tel: +44 (0) 207 220 1666




 


 




 


 




 
 
 


 




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




This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
 
END
 
 
MSCFJMATMBBBMFL