Xebec Adsorption Inc. (TSX: XBC) (“Xebec”), a
global provider of clean energy solutions, is pleased to announce
that on June 11, 2021, it has closed the acquisition of all the
outstanding shares of United Kingdom based Tiger Filtration
(“TFL”). The acquisition of TFL will provide Xebec with a very
profitable and recurring aftermarket manufacturing business for
elements and filters. TFL’s R&D capabilities will also allow
for expansion of its product portfolio to include filtration
products for hydrogen and renewable natural gas (RNG).
Founded in 2004 by former Walker Filtration
employees (Bob Thompson, Gary Ashton and Matthew Rowe), TFL has
gained worldwide recognition for providing high-quality
alternatives for the compressed air and gas industry. TFL was
established 17 years ago and has become an internationally active
company with worldwide sales. Two of its principals will retire and
Gary Ashton will remain with TFL as Managing Director and continue
his leadership in sales and business development.
“We started TFL almost two decades ago and are
happy to be handing over the company to Xebec, a company with a
clear focus on clean technologies. I am particularly proud of the
efficient manufacturing platform that we’ve created and that can
successfully compete with the compressed air & gas
multinationals. I believe that TFL will enable Xebec to not only
capture immediate sales and costs synergies but also help create
products for the energy transition, as our knowledge will
facilitate the development of filter products for hydrogen and
RNG,” said Gary Ashton, Managing Director, Tiger Filtration.
Total consideration payable by Xebec is £12.0
million ($20.6 million CAD) and is subject to certain holdbacks,
adjustments and time-based payments. TFL had revenues of £2.7
million ($4.6 million CAD), an EBITDA margin of 42% and a net
income margin of 34% for FY2020. Furthermore, Xebec expects that
TFL will immediately provide cost savings by displacing parts
currently bought by its existing subsidiaries within the Cleantech
Service Network, HyGear, Inmatec and its headquarters in
Québec.
“TFL provides Xebec with a unique opportunity to
vertically integrate into the valuable aftermarket business for
filters and elements. The acquisition will be immediately accretive
and bring TFL’s products to our service subsidiaries which will be
leveraging our sales and distribution networks to increase
revenues. Ultimately, the acquisition positions us well as we look
to transition from being predominantly an equipment supplier to a
support and service-oriented organization with recurring revenue
streams for renewable and low carbon gases,” stated Kurt Sorschak,
Chairman, CEO and President of Xebec Adsorption Inc.
About Tiger
FiltrationEstablished in 2004, Tiger Filtration is an
independently owned British based company specialising in the
manufacturing of high-quality alternative in-line filter elements,
vacuum pump separators, compressor air & oil separators,
high-pressure stainless-steel filter housings and bespoke
filtration solutions. Tiger’s products are supplied from its 14,000
sq ft facility in Sunderland, UK and sold globally to customers
ranging from small businesses to international organisations who
expect quality products and an exceptional level of service.
Related
links:https://www.xebecinc.comhttps://www.tigerfiltration.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
industrial 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 six 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 press
release contains forward-looking statements within the meaning of
applicable Canadian securities law. These statements relate to
future events or future performance and reflect the expectation of
Management regarding the growth, results of operations, performance
and business prospects and opportunities of the Corporation or its
industry. Forward-looking statements typically contain words such
as “believes”, “expects”, “anticipates”, “continues”, “could”,
“indicates”, “plans”, “will”, “intends”, “may”, “projects”,
“schedules”, “would” or similar expressions suggesting future
outcomes or events, although not all forward-looking statements
contain these identifying words. Examples of such statements
include, but are not limited to, statements concerning: (i)
expected cost savings that the acquisitions may provide in the
future; and (ii) the Corporation’s belief it will capture increased
sales and cost synergies noted in this press release.
These statements are neither promises nor
guarantees but involve known and unknown risks and uncertainties
that may cause the Company’s actual results, level of activity or
performance to be materially different from any future results,
levels of activity or performance expressed in or implied by these
forward-looking statements. These risks include, generally, risks
related to revenue growth, operating results, industry and
products, technology, competition, the economy, the sufficiency of
insurance and other factors which are discussed in greater details
in the most recent quarterly management discussion ana analysis
(“MD&A”) and in the Annual Information Form of the Corporation
filed on SEDAR at www.sedar.com.
Forward-looking statements contained herein are
based on a number of assumptions believed by the Corporation to be
reasonable as at the date of this press release, including, without
limitations, assumptions about trends in certain market segments,
the economic climate generally, the pace and outcome of
technological development, the identity and expected actions of
competitors and customers, the value of the Canadian dollar and of
foreign currency fluctuations, interest rates, the anticipated
margins under new contracts awards, the state of the Corporation’s
current backlog, the regulatory environment, the sufficiency of
internal and disclosure controls, the ability of the Corporation to
successfully integrated acquired business, and the acquisition and
integration of businesses in the future. If these assumptions prove
to be inaccurate, the Corporation’s actual results may differ
materially from those expressed or implied in the forward-looking
statements. The forward-looking statements contained herein are
made as of the date of this MD&A and are expressly qualified in
their entirety by this cautionary statement. Except to the extent
required by law, the Company undertakes no obligation to publicly
update or revise any forward-looking statements contained herein.
Readers should not place undue reliance on forward looking
statements.
Non-IFRS MeasuresThis press release refers to
financial measures that are not recognized under International
Financial Reporting Standard (“IFRS”). A non-IFRS financial measure
is a numerical indicator of a company's performance, financial
position or cash flow that excludes or includes amounts or is
subject to adjustments that have the effect of excluding or
including amounts that are included or excluded in most directly
comparable measures calculated and presented in accordance with
IFRS. Non-IFRS measures do not have any standardized meaning under
IFRS and therefore are unlikely to be comparable to similar
measures presented by other companies having the same or similar
businesses.
The Corporation believes these measures are useful supplemental
information. The following non-IFRS measures are used by the
Corporation in this press release: EBITDA, EBITDA margin.
Please find below definitions of non-IFRS financial measures
used by herein:
“EBITDA” means the earnings before interest, income taxes,
depreciation and amortization, where interest is defined as net
finance costs as per the consolidated statement of comprehensive
income.
“EBITDA margin” being EBITDA as a percentage of
revenues.
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