Consolidated Water Acquires Remaining 39% Interest in PERC Water Corporation for $7.8 Million
January 09 2023 - 8:31AM
Consolidated Water Co. Ltd. (NASDAQ Global Select Market: CWCO), a
leading developer and operator of advanced water supply and
treatment plants, has exercised its option to purchase the
remaining 39% equity ownership in its subsidiary, PERC Water
Corporation (PERC), for approximately $7.8 million, comprised of
$2.44 million in cash and 368,383 shares of common stock valued at
approximately $5.36 million.
Headquartered in Fountain Valley, California, PERC is a leading
water infrastructure company that designs, builds, and operates
water and wastewater infrastructure throughout the Western U.S. As
a result of the transaction completed on January 4, 2023,
Consolidated Water became the 100% owner of PERC.
PERC generated revenues of approximately $17.8 million in the
first nine months of 2022, compared to $13.4 million for the full
year of 2021. In the third quarter of 2022, Consolidated Water’s
services segment revenue grew by $5.5 million due primarily to
PERC’s ongoing construction of an $82 million advanced water
treatment plant in Goodyear, Arizona. In October 2022, PERC was
awarded an expanded 10-year, $49.2 million contract to operate and
maintain two advanced water treatment facilities in Southern
California.
“Given PERC’s strong operating performance, revenue growth and
profitability, as well as its synergies with other areas of our
business and future growth prospects, we believe acquiring the
remaining 39% of PERC significantly enhances shareholder value,”
stated Consolidated Water’s president and CEO, Rick
McTaggart. “Since we acquired a controlling interest in PERC
in the fourth quarter of 2019, we have strengthened its
capabilities and resources, resulting in financial performance that
has exceeded our expectations for this subsidiary.”
“We appreciate the confidence the selling PERC shareholders
demonstrated in our company and its bright future by taking a
substantial portion of the purchase price in common stock,” added
McTaggart. “Completing this transaction supports our plans for
expanding PERC’s presence in the Western U.S., a region that
urgently needs new fresh water sources due to unprecedented drought
conditions.”
Additional details about the transaction will be made available
in a Form 8-K on www.sec.gov here as well in the investor section
of the company’s website.
About Consolidated Water Co. Ltd.Consolidated
Water Co. Ltd. develops and operates advanced water supply and
treatment plants and water distribution systems. The company
operates water production facilities in the Cayman Islands, The
Bahamas and the British Virgin Islands and operates water treatment
facilities in the United States. The company also manufactures and
services a wide range of products and provides design, engineering,
management, operating and other services applicable to commercial
and municipal water production, supply and treatment, and
industrial water and wastewater treatment. For more information,
visit www.cwco.com.
Cautionary Note Regarding Forward-Looking
StatementsThis press release includes statements that may
constitute "forward-looking" statements, usually containing the
words "believe", "estimate", "project", "intend", "expect",
"should", "will" or similar expressions. These statements are made
pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements
inherently involve risks and uncertainties that could cause actual
results to differ materially from the forward-looking statements.
Factors that would cause or contribute to such differences include,
but are not limited to (i) continued acceptance of the company's
products and services in the marketplace; (ii) changes in its
relationships with the governments of the jurisdictions in which it
operates; (iii) the outcome of its negotiations with the Cayman
government regarding a new retail license agreement; (iv) the
collection of its delinquent accounts receivable in the Bahamas;
(v) the possible adverse impact of the COVID-19 virus on the
company’s business; and (vi) various other risks, as detailed in
the company's periodic report filings with the Securities and
Exchange Commission (“SEC”). For more information about risks and
uncertainties associated with the company’s business, please refer
to the “Management’s Discussion and Analysis of Financial Condition
and Results of Operations” and “Risk Factors” sections of the
company’s SEC filings, including, but not limited to, its annual
report on Form 10-K and quarterly reports on Form 10-Q, copies of
which may be obtained by contacting the company’s Secretary at the
company’s executive offices or at the “Investors – SEC Filings”
page of the company’s website at http://ir.cwco.com/docs. Except as
otherwise required by law, the company undertakes no obligation to
update or revise publicly any forward-looking statements, whether
as a result of new information, future events or otherwise.
Company Contact:David W. SasnettExecutive Vice
President and CFOTel (954) 509-8200Email Contact
Investor Relations ContactRon Both or Grant
StudeCMATel (949) 432-7566Email Contact
Media Contact:Tim RandallCMATel (949)
432-7572Email Contact
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