Clearlogx’s proprietary technology precisely and continuously controls the feed of specialty coagulants used in water treatment to maintain a proper pH level and an optimum particle charge, while simultaneously improving overall treatment process efficiency. The technology is especially critical for ultrafiltration (UF) water treatment plants to minimise membrane fouling, and thus, highly complementary to H2O Innovation’s project business.
H2O Innovation will also purchase Clearlogx’s business related to the sale of coagulants for conventional and membrane filtration systems.
The Clearlogx control technology will be added to H2O Innovation’s systems group offering while the specialty coagulants business will join the PWTTM speciality chemicals group.
“This acquisition fits perfectly with H2O Innovation’s vision to complement its offering to its customers and to create synergies between its different business lines. Moreover, this transaction will be accretive from day one to our earning with current sales of approximately US$1.2 million per year and an EBITDA level reaching 15% to 25% of Clearlogx’s revenues. This new business unit will undoubtedly contribute to the growth and profitability of H2O Innovation by complementing its offering, generating more recurrent sales and bringing differentiation,” said Frédéric Dugré, president and CEO of H2O Innovation.
The purchase will be financed by a secured long-term debt of US$2 million with a Canadian chartered bank.