Xebec Acquires Ontario Based Air and Gas Service Company
- First step taken in Xebec’s acquisition strategy to provide Canada-wide service and operational
support for its Industrial and CleanTech Business -
MONTREAL, QC, December 10th, 2018 – Xebec Adsorption Inc. (TSXV: XBC) (OTC: XEBEF) (FRANKFURT: XB6.F) (“Xebec”), a global provider of clean energy solutions is pleased to announce that it has entered into an arm’s length transactional agreement on December 6th, 2018, to acquire all of the outstanding shares of Compressed Air International Inc. (“CAI”) for a purchase price of C$2,200,000, subject to customary closing adjustments, effective on January 1, 2019. CAI’s principals will remain with CAI after the acquisition to optimize CAI’s integration in Xebec’s industrial compressed air treatment business.
“This acquisition will set Xebec on a path of significant growth in its industrial compressed air treatment business, while also providing future Canada-wide service, support and operations capabilities for its cleantech and renewable gas segment. Being able to provide local service, maintenance and operational support to our cleantech customers in Ontario, especially biogas upgrading customers, is a critical component to our value proposition. To be worry-free is important to customers, and knowing that experienced local service and support is available delivers that peace of mind.”
– Kurt Sorschak, President and CEO, Xebec Adsorption Inc.
CAI is a distributor and full-service supplier of industrial compressed air and gas products with locations in Woodbridge and Guelph, Ontario. In business for 20 years, CAI offers an extensive range of compressors, genuine and OEM-equivalent compressor parts, compressed adsorption and refrigerant air dryers, filtration products, emergency and preventative maintenance service as well as complete installation and service packages.
Xebec’s industrial products segment has long been a solid contributor to the overall growth and profitability of the company, generating a significant amount of recurring revenue through the sale of parts and services. This acquisition represents a first transaction of a series of potential mergers and acquisitions opportunities involving potential targets in the industrial business segments as previously announced in the press release of the company dated November 7, 2018 (see related link below). Xebec aims to become a leading Canadian industrial air and gas treatment business, while also offering service and support capabilities for nation-wide biogas to renewable natural gas projects.
For more information:
Louis Dufour, CPA, CA
Chief Financial Officer, Xebec
About Xebec Adsorption Inc.
Xebec Adsorption Inc. is a global provider of gas generation, purification and filtration solutions for the industrial, energy and renewables marketplace. Its customers range from small to multi-national corporations and governments looking to reduce their carbon footprints. Headquartered in Montreal (QC), Xebec designs, engineers and manufactures innovative and transformative products, and has more than 1,500 customers worldwide. Xebec has two manufacturing facilities in Montreal and Shanghai, as well as a sales and distribution network in North America, Europe and Asia. Xebec trades on the TSX Venture Exchange under the symbol XBC. For additional information on the company, its products and services, visit Xebec at https://www.xebecinc.com
About Compressed Air International Inc.
Specializing in complete turnkey solutions, from compressed air piping to electrical and ventilation work, Compressed Air International’s dedicated team of sales and service professionals bring 20 years of experience in product knowledge, parts and service applications, and channel networking, to provide unmatched knowledge and support to distributors and customers. With two locations (Woodbridge and Guelph), CAI’s team of factory trained technicians are available 24/7 for air compressor service in Toronto, the GTA and Southwestern Ontario for all makes/models of air compressors, dryers and accessories.
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 the expectations of management of Xebec with respect to information regarding the business, operations and financial condition of Xebec resulting from CAI’s acquisition and other potential mergers and acquisitions opportunities involving potential targets in the industrial business segments, 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, Xebec’s capacity to successfully integrate CAI in
its industrial products segment and to generate revenue growth as a result of CAI’s acquisition 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.