GLV Acquires One of the Leading Australian Providers of Integrated
Wastewater and Water Re-use Solutions, Mainly for the Food Processing
MONTREAL, March 7 /CNW Telbec/ - (Note: All amounts are in Canadian
dollars unless otherwise indicated.) GLV Inc. ("GLV" or "the Company"; ticker
symbols LVG.A, LVG.B / TSX) is pleased to announce that it has acquired all
the outstanding shares of AJM ENVIRONMENTAL SERVICES PTY LTD. ("AJM"), located
in Sydney (Australia) and specializing in integrated technological solutions
for industrial wastewater treatment and re-use, primarily for the food and
beverage production and processing industry. The acquisition transaction was
settled by a cash consideration of $16.2 M, financed using GLV's credit
facilities, and the assumption of a $1.9 M debt relating entirely to the
building housing AJM's Sydney-based headquarters.
AJM was founded in 1999 and has some 40 employees. Having achieved a 50%
average annual revenue growth over the past three years, AJM recorded sales of
approximately $16.0 M in its last fiscal year. As one of the leading
Australian providers of water treatment solutions to the food and beverage
industry, AJM serves several national multi-facility customers in this sector.
AJM is also involved in certain other industries targeted by GLV's Water
Treatment Group, including the energy sector. Besides the Sydney headquarters,
AJM's organization includes three other offices in Australia and New Zealand
as well as sales agents in Southeast Asia.
Commenting on the strategic value of this acquisition, GLV's President
and Chief Operating Officer Richard Verreault described the key advantages it
brings to GLV as follows:
- The acquisition of AJM meets the Water Treatment Group's objective of
better balancing its revenues between the municipal and industrial
- It enhances GLV's offering and know-how in the provision of wastewater
and water re-use solutions.
- It enables the Company to integrate technologies that are complementary
to those of the Water Treatment Group, although primarily tailored to
the needs of the food and beverage industry: one of the industrial
segments experiencing the greatest and fastest growing demand for
wastewater treatment and re-use technologies worldwide. The integrated
solutions offered by AJM in this niche market notably include dissolved
air flotation and biological systems that are highly efficient in terms
of operating costs and recycled water quality, particularly when
combined with the membrane technology. For instance, AJM is currently
implementing a 4 million liter/day integrated water re-use system for a
large food processing company in Australia, that will allow it to
re-use more than 70% of its wastewater while achieving a level of
purity superior to that of drinking water.
- The acquisition of AJM provides the Water Treatment Group with a
broader operational base in Australia, a high-potential geographic
market for water treatment solutions providers, considering its strong
economy and lack of water resources.
- Finally, AJM has a dynamic and qualified team working primarily in
product engineering, project management and sales, and shares the same
entrepreneurial culture as GLV. Its three founding officers and major
shareholders are joining GLV's Water Treatment Group and will
contribute to the ongoing growth of this segment of its operations in
Australia and to exporting the technologies and know-how they have
developed to Europe and North America.
"Given the compelling need for more efficient water management practices
worldwide, water recycling and re-use constitute a foremost field of
expertise," added Richard Verreault. "Hence, the AJM acquisition is consistent
with our long-term objective of positioning GLV as a global leader in
comprehensive technological solutions for wastewater management, focusing on a
number of high-potential niche markets and territories. In the short and
medium term, we will seek to develop certain technological and market
synergies between AJM and our Water Treatment Group's other units, in order to
provide our customers with even more complete solutions and to further
penetrate certain geographic markets."
About GLV Inc.
GLV Inc. is a leading global provider of technological solutions used in
water treatment and in pulp and paper production. The Water Treatment Group
specializes in the design and marketing of solutions for the treatment and
re-use of municipal and industrial wastewater and water used in various
industrial processes, and also offers water intake screening solutions for
power stations and desalination plants. The Pulp and Paper Group specializes
in the design and marketing of equipment used in various stages of pulp and
paper production, notably chemical pulping, pulp preparation and sheet
formation, and is a recognized leader in rebuilding, upgrading and
optimization services for existing equipment, as well as the sale of spare
parts. GLV is present in some 30 countries and has approximately
Certain statements contained in this press release may constitute
forward-looking statements within the meaning of securities legislation. GLV's
management would like to point out that, by their very nature, forward-looking
statements involve a number of risks and uncertainties such that the Company's
actual and future results could differ materially from those indicated. There
can be no assurance as to the materialization of the results, performance or
achievements as expressed in or underlying the forward-looking statements.
Unless required to do so pursuant to applicable securities legislation, GLV's
management assumes no obligation as to the updating or revision of the
forward-looking statements as a result of new information, future events or
CONFERENCE CALL WITH INVESTORS
ON THE ACQUISITION ON AJM ENVIRONMENTAL SERVICES PTY LTD.
Friday, March 7, 2008 at 10:00 a.m. (Montreal time)
To participate in the conference call, please dial 1-800-590-1817 a few
minutes before the start of the call. For those unable to participate, a
taped re-broadcast will be available Friday, March 7, 2008 from noon
until midnight, Friday, March 14, 2008, by dialing 1-877-289-8525; access
code 21265326 #. THE CONFERENCE CALL (AUDIO) WILL ALSO BE
AVAILABLE AT WWW.GLV.COM. Members of the media are invited to listen in.
For further information:
For further information: Investors: Marc Barbeau, Executive
Vice-President and Chief Financial Officer, (514) 284-2224, www.glv.com; Josée
Lefebvre, (514) 845-1224; Media: Amély Tremblay, (514) 289-8688, ext. 226