Via: CanadaNewswire OTTAWA, Dec. 22, 2014 /CNW
Clearford Water Systems Inc. (“Clearford” or the “Company”), (TSX-V: CLI), today announced the closing of the acquisition of a 90.7% interest in UV Pure Technologies Inc. (“UV Pure”). UV Pure is a Toronto-based manufacturer and distributor of ultraviolet systems for the purification of potable water, grey water and wastewater, based on its proprietary Crossfire™ technology, with over 14,000 systems installed. UV Pure has averaged approximately 10% annual revenue growth with positive operating earnings in each of the past 5 years. Operating earnings for the fiscal year ended May 31st, 2014, were $374,000 on revenues of $2.9 million (determined using Canadian Accounting Standards for Private Enterprises). Following the completion of the acquisition UV Pure will have no debt.
Clearford will acquire 90.7% of all of the outstanding shares of UV Pure for a cash payment of $2.6 million, subject to adjustments at closing. UV Pure’s management team will retain the remaining shares of UV Pure. UV Pure will operate as a corporate subsidiary of Clearford, under the leadership of its President and CEO, Richard (Rick) Vansant. The transaction closed late on December 19th, 2014 and is effective October 31st, 2014.
The market for ultraviolet purification of water and wastewater is estimated to be worth over $1 billion annually, with growth forecasted at 14% annually by independent market research firms. UV Pure’s product line is based on its proprietary Crossfire™ technology that is a generational step ahead of the technology used by competitors. The product line is lower in capital and operating cost per unit of water flow, easier to install, and both easier and cheaper to maintain. Hard water is a challenge for other UV systems and can be purified efficiently and effectively with UV Pure’s Crossfire™ technology. Further details can be found on http://www.uvpure.com.
Clearford is currently the distributor of UV Pure’s products in Colombia, and sees the acquisition as a strategic addition to ClearRecover™, the final step in the Company’s Clearford One™ wastewater collection and treatment system to deliver clean and pure water.