Shareholders of H2O Innovation will receive C$4.25 per share, payable entirely in cash.
When the transaction is completed, Ember will be the controlling shareholder, with significant shareholders IQ and CDPQ and key executives of H2O Innovation, together, holding an equity interest in the corporation of approximately 21%.
The H2O Innovation board of directors unanimously recommends that shareholders vote in favour of the transaction.
Ember will leverage the expertise of the existing management team led by Frédéric Dugré, president, CEO and co-founder of H2O Innovation, to continue to support H2O Innovation’s growth strategy. Ember is also committed to continue employing the corporation’s current key executives and maintaining H2O Innovation’s head office and substantially the same number of employees in the province of Québec.
Under the terms of the agreement, H2O Innovation may solicit a superior offer for a defined “go-shop” period, during which Scotia Capital Inc will approach potential interested parties with a view to soliciting a higher offer, which the purchaser is entitled to match.
“We are very excited to partner with Ember to accelerate growth,” said Dugré. “As a private equity firm investing in infrastructure solutions to reduce carbon intensity, increase resource efficiency, and enhance climate resilience, Ember is the ideal partner for H2O Innovation.”
“While H2O Innovation has achieved significant success in delivering its services and solutions to its customers both organically and through acquisition-driven growth since its inception, we see a unique opportunity for H2O Innovation to enter a new phase of growth supported by our capital and industry expertise,” said Elena Savostianova, managing partner of Ember. “We intend to take a long-term view as we support the ongoing implementation of H2O Innovation’s existing strategy, while continuing to find additional opportunities to better serve its customers.”
