Hydro International PLC Conditional agreement to acquire Hydro-Logic (3696Q)

TIDMHYD

RNS Number : 3696Q

Hydro International PLC

29 February 2016

Hydro International plc

("Hydro" or the "Group")

Conditional agreement to acquire Hydro-Logic

Hydro International (AIM: HYD), a leading provider of environmentally sustainable and innovative solutions to water management challenges the world over, is pleased to announce that it has entered into conditional agreements to acquire Hydro-Logic Limited and the business of Hydro-Logic Services LLP (collectively Hydro-Logic).

Hydro-Logic was founded in 1985 by the current Managing Director, Rod Hawnt. Its products provide instrumentation and information systems for water environment monitoring applications, including data logging, telemetry and software. Hydro-Logic's services provides specialist hydrological and water resource management consultancy, using Hydro-Logic devices to collect and analyse real-world data and apply the findings to support planning decisions, optimise hydraulic and network design, increase water system efficiencies and reduce flood and pollution risk. Rod Hawnt and Colin Fenn, the Managing Director of Hydro-Logic Services, are staying with the business post the acquisition by Hydro International.

Hydro-Logic Limited will be acquired for an initial nominal sum plus the assumption of debt of GBP429,000, plus an additional deferred consideration of 11.5% of sales incorporating the acquired intellectual property across the first three years. This additional consideration is capped at GBP2.0 million.

The business of Hydro-Logic Services LLP will be acquired for an initial amount of GBP916,000, plus an additional deferred consideration calculated on the profitability of the business across the first three years. This additional consideration is capped at GBP2.0 million.

The Hydro-Logic businesses generated GBP3.6m in revenues for the year ended 31 May 2015. The acquisitions are expected to complete on 8(th) March 2016, and will be funded from existing cash and additional debt facilities.

Michael Jennings, Chief Executive of Hydro International plc said:

"This acquisition is an important strategic step in extending our core capabilities. Hydro-Logic's technology, expertise and experience will broaden and deepen many aspects of our business. The new products and services that we can offer will give unprecedented insight into the design, installation and operation of water management products, saving money for customers, reducing risk and helping them to protect the environment."

For further information please contact:

 
 Hydro International   Arden Partners      Brunswick Group 
  plc                   plc                 LLP 
 Tel.+44 (0)1275       Tel. +44 (0)20      Tel: +44 (0)20 
  878371                7614 5900           7404 5959 
 Michael Jennings,     Steve Douglas       Gill Ackers 
  CEO 
 Tony Hollox, CFO      Patrick Caulfield   Will Rowberry

About Hydro International

Hydro International plc (AIM: HYD) (Hydro) is a global supplier of environmentally sustainable products and innovative solutions for the control and treatment of stormwater, wastewater and combined sewer overflows. Hydro's products use a range of advanced technologies including award-winning advanced vortex technology. Headquartered in Clevedon, North Somerset, Hydro also operates in the UK from offices in Ely, Cambridgeshire, as well as across the US from bases in Portland, Maine and Hillsboro, Oregon. The Group has a growing presence outside its core UK and North American markets in territories including: Ireland, the Middle East, Mexico, Brazil, Russia, the European Union, China, Malaysia, Singapore, Korea, Australia and New Zealand.

Please visit the website for further information www.hydro-int.com

This information is provided by RNS

The company news service from the London Stock Exchange

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