Cemtrex Inc. announced that the company has entered into a Letter of Intent to purchase all the assets of a foreign, wastewater treatment and bioenergy plant technology company. The acquiree had annual sales of approximately $14 million in 2013. Due to a confidentiality agreement in place the company's name and further details were not disclosed.
"We are thrilled to have reached an agreement regarding this upcoming strategic acquisition as we see tremendous opportunity globally for these products,” said Cemtrex's Chairman and CEO, Saagar Govil. “This acquisition will allow Cemtrex to expand its environmental capabilities from presently air pollution control solutions and environmental monitoring to include technology for wastewater treatment and the generation of bioenergy from organic waste."
According to Global Water Markets, the market for wastewater equipment is set to rise by 27% to $225 billion over the next five years, with sludge management and energy recovery among the growing trends. Additionally, based on another industry study regarding biogas plants by Ecoprog, the worldwide installed capacity will increase between 2012 and 2016 from 4,700 MW to about 7,400 MW, or about 60%, in five years.
The company expects to complete the transaction by Aug. 31, 2014 and use its existing capital to complete the deal. The company will release additional information in the coming weeks as the acquisition is finalized.
Source: Cemtrex