- 1 December 2006 -

Large separation equipment acquisition for GL&V

Groupe Laperriere & Verreault Inc (GLV) has made what it says is one of its largest acquisitions with its purchase of Krebs International Inc, a designer, manufacturer of high-performance liquid/solid separation equipment for a wide variety of applications and industries, mainly metals and minerals processing.

GL&V will acquire all the share capital of Krebs, based in Tucson , Arizona , along with its six wholly-owned subsidiaries in Australia , Brazil , Chile , Austria , South Africa and China , as well as sales and engineering offices located in various areas in the United States and in the Philippines and the United Kingdom . The transaction will be completed for a cash consideration of US$98 million and the assumption of a US$12 million debt (net of the cash position), subject to certain adjustment clauses.

Krebs' revenues have posted a 33% average annual growth over the past three years, and the company has a substantial and highly profitable operational base in the aftermarket, according to Laurent Verreault, chairman and CEO of GL&V. "Considering Krebs' growth track record in recent years and its current order backlog, we estimate that it will provide GL&V with additional revenues of approximately US$110 million during the first full year," he said.

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