Water Intelligence PLC Reacquisition of Orlando, Florida Franchise (2559U)
28 March 2019 - 6:02PM
UK Regulatory
TIDMWATR
RNS Number : 2559U
Water Intelligence PLC
28 March 2019
Water Intelligence Plc
Reacquisition of Orlando, Florida Franchise
Water Intelligence plc (the "Company" or "Group"), a leading
provider of minimally-invasive leak detection and remediation
services for residential, commercial and municipal customers, is
pleased to announce the reacquisition of its Orlando, Florida
franchise ("Orlando") within the Group's American Leak Detection
subsidiary ("ALD"). Orlando is a significant reacquisition that
enables the Group to leverage an already strong business to add
scale to Water Intelligence, both financially and
operationally.
For full year 2018, Orlando generated approximately $1.02
million of revenue and $0.2 million of pre-tax profits. The
transaction is expected to be immediately accretive to earnings.
Assets acquired are approximately $0.3 million as of December 31,
2018. The purchase price is $1.17 million in cash to be paid in
three payments by March 2020; such payments can be met from current
cash.
The demographics and economy of Orlando are fast growing and a
prime area for accelerated growth for both our American Leak
Detection and Water Intelligence International businesses. With a
variety of commercial customers from hotels and resorts to theme
parks, water leak issues are everywhere. Our national accounts -
insurance and property management - have significant demand for
Water Intelligence solutions in Orlando.
As noted, Orlando is one of the bigger cities in the southeast
United States. As a strategic matter, the acquisition enables ALD
corporate operations to set up another regional office in Florida
to support the growth of the ALD business throughout the southeast
United States. Already, ALD has fast-growing corporate operations
in Miami / South Florida that have grown from approximately
$250,000 in sales to over $2 million in sales within four years.
Orlando is in an even better location from which to achieve similar
success. The city has the business attributes to support a strong
growth path. The Group, moreover, has an execution advantage in
Orlando given that corporate operations will start from a bigger
base enabling ready scale. Together, Orlando and Miami provide a
critical mass of operating personnel to grow the entire southeast
United States providing residential, commercial and municipal
solutions. During 2H, the Company will be opening a Water
Intelligence International office in either Miami or Orlando in
order to advance the Group's municipal line of business.
Importantly, the former owner of the Orlando franchise will be
joining the corporate leadership team not only to grow Orlando much
faster from its already strong base with additional working capital
but also to help execute ALD's growth strategy across the franchise
system.
Executive Chairman, Patrick DeSouza, commented:
"We continue to deliver on our strategic plan. Our recent 2018
trading update communicated another strong year compounding 40%+
sales growth but also significantly increasing profits. 2019 has
only reinforced this trajectory. As we have previously remarked,
the first quarter started in rapid fashion with a variety of
corporate development wins from a franchise reacquisition (Canada)
to a sale of franchise territory (Ohio) to commercial release of
our proprietary sewer technology. Meanwhile, our business, as
always, is growing organically with our national channels such as
insurance and new municipal contracts in different parts of the
world. The reacquisition of Orlando now provides a great close to
the first quarter and significant momentum for a very strong second
quarter."
Enquiries:
Water Intelligence plc Tel: +1 203 654 5426
Patrick DeSouza, Executive Chairman Tel: +44 (0) 207 220
Adrian Hargrave, VP Corporate Development 1666
WH Ireland Limited - NOMAD &
Broker
Adrian Hadden
James Sinclair-Ford
Matthew Chan
The information communicated in this announcement is inside
information for the purposes of Article 7 of Regulation
596/2014
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END
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