Pure Technologies Ltd. (TSX-V:PUR) has announced that it has concluded the purchase of The Pressure Pipe Inspection Company (PPIC) for up to CAD$34.9 million in cash and common stock of Pure.
PPIC, a privately-held company with headquarters in
The base purchase price is $30 million, with provision for a maximum additional payment of $4.9 million should PPIC generate revenues of $24.9 million for the fiscal year ended Sept. 30, 2010. The amount of the additional payment will be reduced on a dollar-for-dollar basis for every dollar that fiscal 2010 revenues fall short of $24.9 million.
Dr. Brian Mergelas, formerly the CEO of PPIC, is now Pure’s senior vice president, corporate strategy and development. Mergelas has published more than 50 papers in academic and industry journals and is a recognized expert in the field of pipeline condition assessment. He will be a key contributor to shaping Pure’s strategic direction and in identifying future opportunities to grow Pure’s business. He will also continue to play a leading role in the promotion of proactive asset management as a cost-effective strategy for bridging the infrastructure funding gap.
“Today is a very exciting day for our clients and employees as we bring together our two companies to create a world-class solutions provider,” said Mergelas. “Both Pure and PPIC have always strived to provide the best possible condition assessment and monitoring solutions, and together we will be able to offer a greater knowledge base and a stronger portfolio to help our clients. As always, our success will continue to be anchored around building long-term relationships that provide exceptional value and build trust.”
Pure CEO Peter Paulson said: “This is a significant milestone for Pure and for the international water technology sector. The combined Pure/PPIC entity will be a world leader in the field of condition assessment and asset management for water and wastewater pipelines. We are excited about the opportunity to work with Dr. Mergelas and his team as we continue to build awareness of the need for cost-effective strategies and solutions for the enormous challenges facing pipeline operators around the world. Working together, we will be able to deliver a cohesive and powerful message to the industry about the value of technology-driven proactive asset management. We are also looking forward to working with PPIC’s research and development team to accelerate the introduction of new condition assessment tools for pipelines.”
Pure expects that the highly complementary expertise and technologies resulting from the acquisition of PPIC will allow it to offer one of the most comprehensive suites of proprietary solutions to water and wastewater agencies around the world, the press release said. PPIC’s leadership position in condition assessment fits well with Pure’s position as the primary provider of long-term monitoring solutions for pre-stressed pipelines. The recent introduction by PPIC of the PipeDiver autonomous electromagnetic inspection technology, which allows unmanned inspection of prestressed concrete pipelines while in service, is a major advancement in the field and is complementary to Pure’s SoundPrint AFO fiber-optic acoustic monitoring system. The combination of PPIC’s
Over the past year or so, Pure has invested heavily in expanding its international presence with the establishment of a branch office in