Xebec Adsorption Inc. (TSX: XBC) (“Xebec”), a
global provider of clean energy solutions, is pleased to announce
on April 30, 2021, it has closed the acquisition of all the
outstanding shares of Tennessee based Nortekbelair Corporation
(“Nortec”). Nortec’s principal, Mike Zarif, Ph.D, will remain with
Nortec after the acquisition and continue his focus on R&D and
product development within the company. With this acquisition,
Xebec’s manufacturing footprint will expand with an 18,500 sq. foot
facility in Maryville, Tennessee, and will provide the company with
key personnel to establish a “Center of Excellence” for its
dehydration products comprised of compressed air dryers, renewable
natural gas dryers, hydrogen dryers and support its Cleantech
Service Network.
Total consideration payable by Xebec is
approximately $8.5 million CAD through a combination of cash on
hand, of which $2.6 million CAD was paid in cash on closing, and
735,838 common shares of Xebec at a price of $4.385 per common
share were issued to the seller. The total consideration is subject
to certain holdbacks, adjustments and time-based payments. Nortec
had revenues of $4.5 million CAD for FY2020 and as with previous
acquisitions, Xebec expects that Nortec’s growth and profitability
could be improved with product, sourcing and back-office
synergies.
“After spending more than 30 years in the
compressed air industry and founding Nortec more than a decade ago,
I am excited to be embarking on this journey with Xebec. I believe
that our manufacturing capabilities will be valuable as Xebec looks
to grow its presence in the United States. I am also looking
forward to playing a key technical role in helping the company
establish a dedicated center to showcase its expertise as it looks
to produce more products in the U.S.,” stated Mike Zarif, Ph.D.,
President and CEO, Nortekbelair Corporation
“Nortec is a strategic acquisition for us
because it will immediately increase our manufacturing capacity.
Given the increasing importance of local sourcing and servicing, we
are glad to have a manufacturing setup in the United States. Mike
and the Nortec team have done an excellent job in growing the
business and creating a foundation that will help us bring new
products to the U.S market and increase the production of existing
ones. I am thrilled that Mike has decided to be a part of the Xebec
family and he will play an important role in supporting our future
acquisitions,” said Kurt Sorschak, Chairman, President and CEO,
Xebec Adsorption Inc.
About NortecNortec was founded
in 2008 based on three key pillars of performance: quality,
perfection and innovation. Although the company was founded in
2008, Nortec’s origins in the compressed air industry go back
several decades. Nortec specializes in compressed air drying and
industrial systems, and the company’s systems are used in a broad
spectrum of applications, ranging from small shops to major
manufacturing plants.
Related
links:https://nbdry.comhttps://www.xebecinc.com
Media Inquiries:Public Relations for
XebecVictor Henriquez, Senior
Partnervictor@publicsc.com+1 514.377.1102
Investor Relations:Xebec
Adsorption Inc.Brandon Chow, Director, Investor
Relationsbchow@xebecinc.com+1 450.979.8700 ext 5762
About Xebec Adsorption
Inc.Xebec is a global provider of clean energy solutions
for renewable and low carbon gases used in energy, mobility and
industry applications. The company specializes in deploying a
portfolio of proprietary technologies for the distributed
production of hydrogen, renewable natural gas, oxygen and nitrogen.
By focusing on environmentally responsible gas generation, Xebec
has helped thousands of customers around the world reduce their
carbon footprints and operating costs. Headquartered in Québec,
Canada, Xebec has a worldwide presence with five manufacturing
facilities, eight Cleantech Service Centers and five sales offices
spanning over four continents. Xebec trades on the Toronto Stock
Exchange under the symbol (TSX: XBC). For more
information, xebecinc.com.
Cautionary Statement This news
release contains forward-looking statements and forward-looking
information (together, “forward-looking statements”) within the
meaning of applicable securities laws. All statements, other than
statements of historical facts, are forward-looking statements, and
subject to risks and uncertainties. Generally, forward-looking
statements can be identified by the use of terminology such as
“plans”, “seeks”, “expects”, “estimates”, “intends”, “anticipates”,
“believes”, “could”, “might”, “likely” or variations of such words,
or statements that certain actions, events or results “may”,
“will”, “could”, “would”, “might”, “will be taken”, “occur”, “be
achieved” or other similar expressions. Forward-looking statements,
including statements concerning future capital expenditures,
revenues, expenses, earnings, economic performance, indebtedness,
financial condition, losses and future prospects as well as the
expectations of management of Xebec with respect to information
regarding the business and the expansion and growth of Xebec
operations, involve risks, uncertainties and other factors that
could cause actual results, performance, prospects and
opportunities to differ materially from those expressed or implied
by such forward-looking statements. Forward-looking statements are
subject to business and economic factors and uncertainties, and
other factors that could cause actual results to differ materially
from these forward-looking statements, including the relevant
assumptions and risks factors set out in Xebec's public documents,
including in the most recent annual management discussion and
analysis and annual information form, filed on SEDAR at
www.sedar.com. Furthermore, should one or more of the risks,
uncertainties or other factors materialize, or should underlying
assumptions prove incorrect, actual results may vary materially
from those described in forward-looking statements or information.
These risks, uncertainties and other factors include, among others,
the uncertain and unpredictable condition of global economy,
notably as a consequence of the Covid-19 pandemic, Xebec’s capacity
to generate revenue growth, the availability to Xebec of financing
and credit alternatives and access to capital, Xebec’s capacity to
meet all its other commitments and business plans, Xebec’s limited
number of customers, the potential loss of key employees, changes
in the use of proceeds relating to the loan, share price
volatility, and other factors. Although Xebec believes that the
assumptions and factors used in preparing the forward-looking
statements are reasonable, undue reliance should not be placed on
these statements, which only apply as of the date of this news
release, and no assurance can be given that such events will occur
in the disclosed times frames or at all. Except where required by
applicable law, Xebec disclaims any intention or obligation to
update or revise any forward-looking statement, whether as a result
of new information, future events or otherwise.
Xebec Adsorption (TSX:XBC)
Historical Stock Chart
From Mar 2024 to Apr 2024
Xebec Adsorption (TSX:XBC)
Historical Stock Chart
From Apr 2023 to Apr 2024