Xebec Expands Cleantech Service Network with Acquisition of North Carolina Based Air Flow
MONTREAL, Aug. 04, 2020 (GLOBE NEWSWIRE) — Xebec Adsorption Inc. (TSXV: XBC) (“Xebec”), a global provider of clean energy solutions is pleased to announce that Xebec Holding USA Inc, a wholly-owned subsidiary of Xebec Adsorption Inc., has entered into an agreement effective July 31st, 2020, to acquire all of the outstanding securities of Enerphase Industrial Solutions, Inc. (doing business as “Air Flow”). Air Flow’s principals will remain with Air Flow after the acquisition to optimize their integration into Xebec’s industrial service and support business and to grow the operation over the coming years.
Total consideration payable by Xebec is approximately $6.0M, subject to certain holdbacks, adjustments and time-based payments. Air Flow had revenues of approximately $10.1M for the fiscal year ended December 31, 2019 and revenues are estimated to grow organically to $11.5M in 2020 with an EBITDA margin of approximately 10%. Xebec expects that Air Flow’s growth and profitability could be improved with additional supply chain and cost optimizations, product synergies and the back-office expertise Xebec has built from prior acquisitions.“When Xebec approached us, we saw a unique opportunity to be part of a mission that was larger than us. Climate change is a growing concern and I saw how our team and experience in compressed air service could translate into being a strong value add to help service and support Xebec’s upcoming renewable natural gas and hydrogen systems. North Carolina is one of the top 10 agriculture producing states which represents significant potential for RNG projects. Air Flow is well positioned with three points of presence to offer truly local support to future dairy and hog farmers, municipalities, and industry,” states B. Stanton Shelton, III, President and CEO, Air Flow.Air Flow is a leading distributor and service provider of compressed air equipment in North Carolina. Incorporated in 1981, the company brings decades of industry experience and has built long standing relationships with major manufacturers and has developed a significant service footprint through numerous equipment installations. Air Flow’s focus is on preventative maintenance solutions, air energy system audits and analysis, and timely machine rentals, and parts and service.“As renewable natural gas and hydrogen adoption continues, the need to support customers over the lifetime of their installations grows. Air Flow is yet another example of an acquisition that is immediately accretive to Xebec’s earnings and the service team at Air Flow can be trained to also work with renewable gases. Growing our service footprint is key to the Xebec’s strategy to sell more Cleantech systems, better support our customers and capture more aftermarket business. I’m happy to see the continued execution by our team and we expect several more acquisitions throughout the rest of the year,” says Dr. Prabhu Rao, Chief Operating Officer, Xebec Adsorption Inc.Related links:
https://airflowinc.com/For more information:
Xebec Adsorption Inc.
Brandon Chow, Investor Relations Manager
+1 450.979.8700 ext 5762About Xebec Adsorption Inc.
Xebec is a global provider of gas generation, purification and filtration solutions for the industrial, energy and renewables marketplace. Well-positioned in the energy transition space with proprietary technologies that transform raw gases into clean sources of renewable energy, Xebec’s 1500+ customers range from small to multi-national corporations, governments and municipalities looking to reduce their carbon footprints. Headquartered in Montréal, Quebec, Canada, Xebec has several Sales and Support offices in North America and Europe, as well as two manufacturing facilities in Montréal and Shanghai. Xebec trades on the TSX Venture Exchange under the symbol XBC. For more information, www.xebecinc.com.Cautionary Statement
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release contains forward-looking statements and forward-looking information (together, “forward-looking statements”) within the meaning of applicable securities laws. All statements, other than statements of historical facts, are forward-looking statements, and subject to risks and uncertainties. Generally, forward-looking statements can be identified by the use of terminology such as “plans”, “seeks”, “expects”, “estimates”, “intends”, “anticipates”, “believes”, “could”, “might”, “likely” or variations of such words, or statements that certain actions, events or results “may”, “will”, “could”, “would”, “might”, “will be taken”, “occur”, “be achieved” or other similar expressions. Forward-looking statements, including statements concerning future capital expenditures, revenues, expenses, earnings, economic performance, indebtedness, financial condition, losses and future prospects as well as the expectations of management of Xebec with respect to information regarding the business and the expansion and growth of Xebec operations, involve risks, uncertainties and other factors that could cause actual results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements are subject to business and economic factors and uncertainties, and other factors that could cause actual results to differ materially from these forward-looking statements, including the relevant assumptions and risks factors set out in Xebec’s public documents, including in the most recent annual management discussion and analysis and annual information form, filed on SEDAR at www.sedar.com. Furthermore, should one or more of the risks, uncertainties or other factors materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements or information. These risks, uncertainties and other factors include, among others, the uncertain and unpredictable condition of global economy, notably as a consequence of the Covid-19 pandemic, Xebec’s capacity to generate revenue growth, the availability to Xebec of financing and credit alternatives and access to capital, Xebec’s capacity to meet all its other commitments and business plans, Xebec’s limited number of customers, the potential loss of key employees, changes in the use of proceeds relating to the loan, share price volatility, and other factors. Although Xebec believes that the assumptions and factors used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed times frames or at all. Except where required by applicable law, Xebec disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.