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Company will continue to operate under Aqua name
Pure Technologies Ltd. announced that it has concluded the purchase of Aqua Environmental Pty. Ltd. for up to $5.88 million in cash and common stock of Pure.
Aqua, a privately held company headquartered in Sydney, Australia, provides services relating to water main leak detection, water loss management and pipeline condition assessment in Australia and New Zealand. Founded in 1979, the company has been a major provider of pipeline leak detection and condition assessment for the region. As such, this acquisition positions Pure to build on the established expertise and have a presence in the Australian region. Both of Aqua’s principals, Hugh Chapman Sr. and Hugh Chapman Jr. will continue to be involved in the business. For the fiscal year ending June 30, 2010, Aqua had revenues of $1.97 million.
The base purchase price is $2,940,000. There is provision for additional payments of $980,000 per year for three years should Aqua generate revenues of $1,960,000 for each year. The purchase price is based on a working capital balance of $245,000 at closing and will be adjusted on a dollar-for-dollar basis depending on the actual working capital at closing. Consideration paid at closing was $2,205,000 in cash, and Pure issued 169,355 shares valued at $4.34 per share which was negotiated as part of the transaction. Any additional payments will be paid approximately 75% in cash and 25% in Pure common stock with an attributed value of $4.34. The business will continue to operate under the name of Aqua for the foreseeable future.
“With this acquisition, Pure will now provide pipeline leak detection, condition assessment and asset management services in Australia, where drought has led to an increased emphasis on water preservation,” said Jack Elliott, Pure’s president and chief operating officer. “The state and federal governments have invested heavily in water infrastructure and to fund such projects, the retail cost of water has risen substantially. Reducing leakage with proactive techniques and technologies is vital to the region.”