TORONTO, Aug. 27, 2020 /CNW/ - Kraus Global Ltd. ("Kraus") shareholders announced that it has undertaken a strategic restructuring to position the long-standing Kraus brand for future innovation and long-term success. Kraus will be consolidated under its controlling shareholder, ComTech Energy ("ComTech") and PRIVEQ Capital Funds will exchange its minority ownership in Kraus for shares in ComTech. This plan will unify the Kraus and Swift solution brands under a single parent company, creating a streamlined platform with greater strategic flexibility, that is better positioned for accelerated growth.
The process is intended to improve profitability and eliminate Kraus' legacy debt burden, allowing the Kraus brand to emerge with a strengthened balance sheet to complement its future growth initiatives. The plan includes relocating production to ComTech's manufacturing facility in Milton, Ontario, streamlining operations and significantly reducing annual SG&A, as part of strategic realignment to create greater focus on the customer experience. The growing transition towards renewable energy will create an industry dynamic, which maximizes flexibility and responsiveness - which are both critically important for our customers.
Kraus' day-to-day operations, as well as its engagement with customers and suppliers, will not only continue as usual but will ultimately be stronger as a result. ComTech will continue to drive the Kraus brand forward by expanding its leading position in the CNG/RNG dispenser market, further investing in hydrogen dispensing solutions, and developing a leading alternative (gaseous) fuel analytics and tracking software platform for transportation fleets.
James Ro, ComTech's President and Owner said, "acquiring controlling interest in Kraus last year gave us the visibility of the status quo in the global alternative fuel dispensing market. We are starting to see significant opportunities to innovate and provide a seamless, integrated customer experience as well as capitalize on the growing long-term trend of alternative fuels in the heavy-duty transportation market. By linking the Kraus and Swift product brands together, we will bring a wider range of differentiated, high value, innovative solutions to current and future customers around the world."
Brad Ashley, Managing Partner of PRIVEQ Capital Funds said, "we are delighted to be more directly involved as a partner in ComTech Energy. We see ComTech as a leading innovator in the global alternative fuel space with significant growth opportunities across its product lines. We look forward to working closely with ComTech's excellent management team to help them realize their vision."
About ComTech Energy
Headquartered in Toronto (ON), ComTech is a national turn-key, vertically integrated solutions provider for alternative energy infrastructure in the heavy-duty transportation sector. For more information, please go to www.comtechenergy.ca.
SOURCE ComTech Energy
For further information: Media Contact: James Ro - President, ComTech Energy, [email protected]