Pure Technologies Ltd. (Pure) has announced 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 US$4.60 million, consisting of US$3.45 million in cash and US$1.15 million in restricted shares of Pure.
Closing of the transaction is expected to occur early in 2017. For the financial year ended 31 January 2016, E-MAC generated revenue of US$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 programmes 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.
Read the article online at: https://www.worldpipelines.com/business-news/02012017/pure-to-acquire-pipeline-inspection-and-corrosion-company-e-mac/