Hydro International to buy Hydro-Logic for up to 5 million poundsStaff writer ▼ | March 1, 2016
Hydro International entered into conditional agreements to acquire Hydro-Logic Limited and the business of Hydro-Logic Services LLP.
Acquisition The Hydro-Logc businesses generated £3.6m in revenues
Hydro-Logic's services provides specialist hydrological and water resource management consultancy, using Hydro-Logic devices to collect and analyse real-world data and apply the findings to support planning decisions, optimise hydraulic and network design, increase water system efficiencies and reduce flood and pollution risk.
Rod Hawnt and Colin Fenn, the managing director of Hydro-Logic Services, are staying with the business post the acquisition by Hydro International.
Hydro-Logic Limited will be acquired for an initial nominal sum plus the assumption of debt of £429,000, plus an additional deferred consideration of 11.5% of sales incorporating the acquired intellectual property across the first three years. This additional consideration is capped at £2 million.
The business of Hydro-Logic Services LLP will be acquired for an initial amount of £916,000, plus an additional deferred consideration calculated on the profitability of the business across the first three years. This additional consideration is capped at £2 million.
The Hydro-Logc businesses generated £3.6m in revenues for the year ended May 31, 2015. The acquisitions are expected to complete on March 8, 2016, and will be funded from existing cash and additional debt facilities.
Michael Jennings, chief executive officer of Hydro International plc said: "This acquisition is an important strategic step in extending our core capabilities. Hydro-Logic's technology, expertise and experience will broaden and deepen many aspects of our business.
"The new products and services that we can offer will give unprecedented insight into the design, installation and operation of water management products, saving money for customers, reducing risk and helping them to protect the environment." ■