ENPAR entered into a binding letter of intent with the owners of Pumptronics to acquire 100% of the issued share capital for a transaction value equal to US$3 million, comprised of a US$1.2 million cash payment and 12 million common shares of ENPAR. The company has also agreed to provide an advance payment of US$100 000 to Pumptronics as a sign of its commitment to the transaction. No finder’s fee will be issued in conjunction with the acquisition.
Pumptronics is a privately held corporation based in Ontario, Canada. It is an integrated pump station manufacture specialising in custom design and automation, with projected growth for 2018 and 2019 and a robust sales pipeline. The company services the municipal, commercial, oil and gas, mining and golf and turf markets, amongst other customised solutions. ENPAR, meanwhile, is a company applying its patented and proprietary electrochemical technologies to the treatment of waste water, desalination water and drinking water contaminated by metals or nutrients, i.e. nitrate/ammonia associated with the mining, metal processing, chemical, agricultural, municipal and waste management sectors.
Gene Shelp, President and CEO, said: “We are pleased to announce this proposed acquisition, which is fully aligned with our growth strategy of coupling a strong baseline revenue stream with significant growth potential, and blue-sky technology sales with a commensurate appreciation of shareholder value. By combining two highly complementary businesses, we will increase our depth and breadth of technical services and manufacturing capabilities.
"We will also capitalise on increased cross-selling to create new revenue growth and development opportunities in key geographies. The combined talents of the two companies will enhance our ability to succeed in existing markets and to identify and exploit new markets."