28th Mar 2019 10:33
LONDON (Alliance News) - Water Intelligence PLC said on Thursday it has reacquired its Orlando franchise in Florida through subsidiary American Leak Detection.
The purchase price was USD1.2 million, to be paid in three payments by March 2020. The provider of leak detection and remediation services currently has sufficient cash to make these payments.
For 2018, the Orlando franchise generated USD1 million of revenue and USD200,000 of pretax profit. Water Intelligence expects the transaction to be immediately accretive to earnings.
The acquisition enables ALD to set up another regional office in Florida to support the growth of the business throughout the south-east US, Water Intelligence added.
The company sees the Orlando franchise as a significant reacquisition due to the city's fast-growing economy and demographics, it added.
During the second half of the year, the company will open a Water Intelligence international office in either Miami or Orlando. The former owner of the Orlando franchise will be joining the leadership team after the sale.
"We continue to deliver on our strategic plan. Our recent 2018 trading update communicated another strong year compounding 40% plus sales growth but also significantly increasing profits. 2019 has only reinforced this trajectory," said Executive Chair Patrick DeSouza.
"The reacquisition of Orlando now provides a great close to the first quarter and significant momentum for a very strong second quarter," added DeSouza.
Shares of Water Intelligence were up 3.1% at 289.70 per share on Thursday.
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