Xebec Adsorption Inc. (TSXV: XBC) (“Xebec”), a
global provider of clean energy solutions is pleased to announce
that the Company has entered into an agreement effective August
31st, 2020, to acquire all of the outstanding securities of Applied
Compression Systems Ltd. (“ACS”). ACS’ principals will remain with
ACS after the acquisition to optimize their integration into
Xebec’s industrial service and support business and to grow the
operation over the coming years.
Xebec’s Cleantech service coverage will increase
and now include British Columbia, a province with the country’s
most aggressive renewable natural gas and hydrogen mandates and
targets. ACS has existing experience and customer relationships for
servicing renewable gas installations.
Total consideration payable by Xebec is
approximately $4.5M, subject to certain holdbacks, adjustments and
time-based payments. ACS had revenues of over $8.0 million for the
last twelve months with an EBITDA margin of approximately 12%. As
with other acquisitions in the Industrial Service and Support
segment, Xebec expects that ACS’ growth and profitability could be
improved with sourcing and back-office synergies.
When customers select a vendor for a
multi-million-dollar renewable natural gas or hydrogen
installation, service and support figures prominently in their
purchasing decision. With its service acquisition strategy Xebec
responds to this important customer need and sees it as competitive
advantage due to the lack of a similar offering from other vendors.
Furthermore, the expansion of its Cleantech Service Network
(“CSN”), is set to expand across North America over the coming
years. In addition, this strategy will lead to increased recurring
aftermarket sales with a positive impact on overall profitability.
As a result, Xebec expects revenues of approximately $200 million
in its Industrial Service and Support segment by 2025.
“We’ve been a Xebec customer for more than a
decade buying both regenerative compressed air dryers and nitrogen
generators. We’re happy to now be more involved with Xebec through
this acquisition and are excited to help increase the number of
sales channels and provide the capability to design and manufacture
full compressed air & gas systems. In addition, we’ve worked on
a number of waste-to-energy projects in British Columbia and the
United States such as renewable natural gas systems. We’re looking
forward to being part of Xebec, a worldwide leader in renewable
natural gas and hydrogen systems and see the use of renewable gases
grow substantially in British Columbia over the coming years,”
states Mike Sanderman, President, Applied Compression Systems
Ltd.
Applied Compression Systems offers a single
source solution for air & gas compression requirements. The
company has a strong focus on custom designed and fabricated
compressor packages for specialized applications in the oil, gas,
petrochemical, alternative fuel, waste-to-energy, research, power
generation, mining and manufacturing industries. ACS can supply
either standard units or design and fabricate equipment that is
custom-built to specific requirements from concept to
completion.
“ACS is both a customer and supplier and has
unique capabilities to design and build compressed air & gas
systems. This acquisition will strengthen our Industrial product
portfolio as a compressor integrator while simultaneously
increasing our service presence in Western Canada. British Columbia
is a key province for us as it’s one of two in Canada that
specifically mandates supporting renewable natural gas and
hydrogen. ACS’ rich experience in compressor system integration and
service is well recognized and a great asset to our company.
Given their location on the west coast, it will
bode positively with the strong pipeline of projects we are working
on in those regions. Having local service and support will continue
to be a key part in assuring customers they will be taken care of.
We welcome Mike and his team to the growing portfolio of Xebec
industrial companies,” says Dr. Prabhu Rao, Chief Operating
Officer, Xebec Adsorption Inc.
Related
links:https://www.xebecinc.com
https://www.appliedcompression.com/
For more information:Xebec
Adsorption Inc. Brandon Chow, Investor Relations Manager
bchow@xebecinc.com +1 450.979.8700 ext 5762
About Xebec Adsorption
Inc.Xebec is a global provider of gas generation,
purification and filtration solutions for the industrial, energy
and renewables marketplace. Well-positioned in the energy
transition space with proprietary technologies that transform raw
gases into clean sources of renewable energy, Xebec’s 1500+
customers range from small to multi-national corporations,
governments and municipalities looking to reduce their carbon
footprints. Headquartered in Montréal, Quebec, Canada, Xebec has
several Sales and Support offices in North America and Europe, as
well as two manufacturing facilities in Montréal and Shanghai.
Xebec trades on the TSX Venture Exchange under the symbol XBC. For
more information, www.xebecinc.com.
Cautionary Statement Neither
TSX Venture Exchange nor its Regulation Services Provider (as that
term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this
release. 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.
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