CALGARY, Dec. 21, 2016 /CNW/ - Pure Technologies Ltd. ("Pure" or the "Company") (TSX: PUR) announced today that it has entered into a definitive agreement to acquire the business and related assets of E-MAC Corrosion Inc. ("E-MAC"), a provider of oil and gas pipeline inspection services, for consideration of $4.60 million, consisting of $3.45 million in cash and $1.15 million in restricted shares of Pure. Closing of the transaction is expected to occur early in 2017. For the financial year ended January 31, 2016, E-MAC generated revenue of $6.8 million and currently has 18 employees.
"This acquisition represents another step in enhancing the abilities and performance of our rapidly growing PureHM division," said Jack Elliott, President and CEO of Pure. "We are pleased with the opportunity to augment the robust growth of our PureHM business with a well-run company that has been successful in a very competitive and fragmented market. E-MAC has built a profitable business that complements PureHM through an improved customer offering, increased capacity to perform additional pipeline surveys and recurring work with new customers. Through the positive working relationship we've enjoyed with E-MAC over the years, we anticipate integration to be seamless while accelerating our overall growth plans. We expect this acquisition to be immediately accretive to Pure."
Since 2006, E-MAC has licensed PureHM's industry-leading Spectrum XLI technology for its indirect inspection surveys including cathodic protection. In addition, E-MAC provides pipeline owners with comprehensive corrosion prevention programs including consulting, system management and associated product sales. Through the acquisition of E-MAC's business and related assets, PureHM significantly improves its position within the North American pipeline corrosion sector, becoming an end-to-end solution provider with the added benefit of leveraging the Company's leading technologies and new innovative products. E-MAC is headquartered in Edmonton, Alberta, with local offices in Calgary, Alberta, and Surrey, British Columbia.
Additional information on E-MAC can be found at: www.e-mac.ca
About Pure Technologies Ltd.
Pure Technologies Ltd. is an international asset management, technology and services company which has developed patented technologies for inspection, monitoring and management of critical infrastructure around the world. Pure's business model incorporates four distinct but complementary business streams:
- Sales of proprietary monitoring technologies for pipelines, bridges and structures;
- Recurring revenue from data analysis, site maintenance, and from technology licensing;
- Premium technical services including pipeline inspection, leak detection and condition assessment;
- Specialized engineering services in areas related to asset management, primarily in the area of pipeline condition assessment for water and wastewater infrastructure.
This News Release contains forward-looking statements, including, without limitation, statements containing the words "should", "believe", "anticipate", "may", "plan", "will", "continue", "intend", "expect", "estimate" and other similar expressions. These statements constitute "forward-looking information" within the meaning of applicable Canadian securities laws. These statements are based on the Company's current expectations, estimates, forecasts and assumptions. Forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and other important factors that could cause the Company's actual performance to be materially different from that projected. Examples of these statements would include those relating to the benefits expected to be realized from the acquisition of E-MAC's business and related assets, the timing of closing of the acquisition, where the Company forecasts the timing of new and existing projects and the success of the Company's new technologies and entering new markets. The assumptions, risks and uncertainties that could cause actual results to differ materially from the forward-looking information, include, but are not limited to, delays in the satisfaction of the conditions to the closing of the E-MAC transaction, the Company's ability to successfully integrate the E-MAC business and assets into its existing operations, market changes, the Company's ability to deliver services in a timely and cost effective manner, technological change, changes in general economic conditions and other risks detailed from time to time in our ongoing filings with the Canadian securities regulatory authorities, including those in the Company's Annual Information Form, which filings can be found at www.sedar.com. Given these assumptions, risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Unless otherwise required by applicable securities laws, the Company undertakes no obligation to publicly update or revise any forward-looking statements either as a result of new information, future events or otherwise.
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For further information: To find out more about Pure Technologies Ltd. (TSX: PUR), visit our website at www.puretechltd.com or contact Paul Moon, Director of Investor Relations; (403) 537-3244 or firstname.lastname@example.org.