OTTAWA, Nov. 19, 2014 /CNW/ - Clearford Water Systems Inc. ("Clearford" or the "Company"), (TSX-V: CLI), today announced the acquisition of a 90.5% interest in UV Pure Technologies Inc. ("UV Pure"). UV Pure is a Toronto-based manufacturer and distributer of ultraviolet systems for the purification of potable water, grey water and wastewater, based on its proprietary Crossfire™ technology, with over 14,000 systems installed. UV Pure has averaged approximately 10% annual revenue growth with positive operating earnings in each of the past 5 years. Operating earnings for the fiscal year ended May 31st, 2014 were $374,000 on revenues of $2.9 million (determined using Canadian Accounting Standards for Private Enterprises). Following the completion of the acquisition UV Pure will have no debt.
Clearford will acquire 90.5% of all outstanding shares of UV Pure for a cash payment of $2.5 million, subject to adjustments at closing. UV Pure's management team will retain the remaining shares of UV Pure. UV Pure will operate as a corporate subsidiary of Clearford, under the leadership of its President and CEO, Richard (Rick) Vansant. Clearford is funding the acquisition and adding to working capital by sale of a mortgage loan receivable and additional long-term debt. Clearford is providing today an $800,000 non-refundable deposit which will be applied against the purchase price. The transaction is expected to close on or before December 10th, effective October 31st, 2014, subject to the approval of the TSX Venture Exchange.
The market for ultraviolet purification of water and wastewater is estimated to be over $1 billion annually, with growth forecasted at 14% annually by independent market research firms. UV Pure's product line is based on proprietary Crossfire™ technology that is a generational step ahead of the technology used by competitors. The product line is lower in capital and operating cost per unit of water flow, easier to install, and both easier and cheaper to maintain. Full details can be found at www.uvpure.com.
Clearford is currently the distributor of UV Pure's products in Colombia, and sees the acquisition as a strategic addition to ClearRecover™, the final step in the Company's Clearford One™ wastewater collection and treatment system to deliver clean and pure water.
Mr. Kevin Loiselle, President and CEO of Clearford, commented: "We are very excited to add UV Pure and its Crossfire™ technology to the Clearford family. Our experience as Colombia distributor has demonstrated that there is a robust worldwide market for this technology. Test results using Crossfire™ directly on ClearDigestTM effluent delivered through ClearConvey™ indicate that the Clearford OneTM system can produce treated and disinfected water to meet the needs of many areas in the developing world without the need for a wastewater treatment plant. We look forward to introducing UV Pure to India and other international markets.
Mr. Richard Vansant, President and CEO of UV Pure, welcomed the opportunity to build the market position of Crossfire™ in cooperation with Clearford: "Our leadership team is excited to begin the next chapter of UV Pure's growth story in partnership with Clearford Water Systems. The technologies of both companies are targeted toward distributed treatment applications for municipal, industrial and commercial customers, the fastest growing segment of the global market. We believe that the combination of Clearford One™ and Crossfire™ will leverage the strengths of Clearford and UV Pure to maximum advantage", Mr. Vansant said.
Neither the 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.
About Clearford Water Systems Inc.
Clearford Water Systems Inc. (TSX-V: CLI) is a provider of unified water management and sanitation systems based on Clearford One™. Clearford One™ is a proprietary system comprised of ClearDigest™ smart digester, SBS® ClearConvey™ small bore sewer, and ClearRecover™. For more information on Clearford Water Systems, please visit www.clearford.com.
About UV Pure Technologies Inc.
UV Pure Technologies manufactures technically advanced UV water purification systems. The Company has won an Artemis Top 50 Clean Tech Company award, two Frost and Sullivan Best Practices awards, a Canadian Drinking Water Association award for innovation, and is a Going Green Global Top 200 company.
There are currently over 14,000 UV Pure systems in residential, commercial, industrial, public and municipal applications, with flow rates up to 1 million gallons per day. An aerospace version of UV Pure's system is being used by Boeing to purify water on its new 787 Dreamliner.
UV Pure's patented Crossfire Technology® is dramatically advantaged compared to conventional UV systems. Lamps are mounted in air surrounded by elliptical reflectors providing more effective deactivation of pathogens, facilitating easy lamp changes and visual quartz inspection. They are self-cleaning, smart - with multiple sensors and on-board diagnostics guiding maintenance, engineered to be fail-safe, virtually maintenance free, and are plug-in ready for remote monitoring. For more information on UV Pure Technologies, please visit www.uvpure.com.
Forward Looking Statements
This news release contains certain statements that constitute forward-looking statements as they relate to the Company and its management. Forward-looking statements are not historical facts but represent management's current expectation of future events, and can be identified by words such as "believe", "expects", "will", "intends", "plans", "projects", "anticipates", "estimates", "continues" and similar expressions. Although management believes that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that they will prove to be correct.
By their nature, forward-looking statements include assumptions and are subject to inherent risks and uncertainties that could cause actual future results, conditions, actions or events to differ materially from those in the forward-looking statements. If and when forward-looking statements are set out in this news release, Clearford will also set out the material risk factors or assumptions used to develop the forward-looking statements. Except as expressly required by applicable securities law, the Company assumes no obligation to update or revise any forward looking statements. The future outcomes that relate to forward-looking statements may be influenced by many factors, including, but not limited to: industry cyclicality; the ability to secure third party agreements; successful integration of Clearford's system with third party technology; competition; reduction in demand for products; collection from customers; relationships with suppliers; product liability; intellectual property; reliance on key personnel; environmental; interest rates; uninsured and underinsured losses; operating hazards; risks of future legal proceedings; income tax matters; credit facilities; availability and terms of financing; distribution of securities; restrictions on potential growth; effect of market interest rates on price of securities; and potential dilution.
SOURCE: Clearford Industries Inc.
For further information: Mark McGuire, Clearford Water Systems Inc., Phone: (613) 599-6474 ext 310, www.clearford.com