Xebec acquires Ontario-based Compressed Air International
December 14, 2018
By Xebec Adsorption Inc.
Dec. 14, 2018 – Xebec Adsorption Inc., a global provider of clean energy solutions, is pleased to announce that it entered into an arm’s length transactional agreement on Dec. 6, 2018 to acquire all of the outstanding shares of Compressed Air International Inc. (CAI) for a purchase price of CAD$2,200,000, subject to customary closing adjustments, effective Jan. 1, 2019. CAI’s principals will remain with CAI after the acquisition to optimize CAI’s integration in Xebec’s industrial compressed air treatment business.
“This acquisition will set Xebec on a path of significant growth in its industrial compressed air treatment business, while also providing future Canada-wide service, support and operations capabilities for its cleantech and renewable gas segment. Being able to provide local service, maintenance and operational support to our cleantech customers in Ontario, especially biogas upgrading customers, is a critical component to our value proposition. To be worry-free is important to customers, and knowing that experienced local service and support is available delivers that peace of mind,” said Kurt Sorschak, president and CEO, Xebec.
CAI is a distributor and full-service supplier of industrial compressed air and gas products with locations in Woodbridge and Guelph, Ont. In business for 20 years, CAI offers an extensive range of compressors, genuine and OEM-equivalent compressor parts, compressed adsorption and refrigerant air dryers, filtration products, emergency and preventative maintenance service as well as complete installation and service packages.
Xebec’s industrial products segment has long been a solid contributor to the overall growth and profitability of the company, generating a significant amount of recurring revenue through the sale of parts and services. This acquisition represents a first transaction of a series of potential mergers and acquisitions opportunities involving potential targets in the industrial business segments as previously announced in the press release of the company dated Nov. 7, 2018. Xebec aims to become a leading Canadian industrial air and gas treatment business, while also offering service and support capabilities for nation-wide biogas to renewable natural gas projects.
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