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Ceco Environmental Acquires Treatment Systems Supplier Compass Water Solutions.

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Vincent

MANews-(C)2009-2022

US-based environmentally focused industrial company Ceco Environmental Corp. (NASDAQ: CECE) has acquired US-based industrial water and wastewater treatment systems supplier Compass Water Solutions, Inc, the company said.

The transaction adds to Ceco's growing industrial water technologies, which is anchored by its Peerless-Skimovex brand.

Compass generated approximately USD 11m of revenue in 2021 with double-digit EBITDA margins. The total purchase price was USD 12.5m and funded by a mix of cash and debt.

Approximately 70% was paid at closing with the balance to be paid over a two-year period.

Ceco expects the acquisition to be accretive to total company EBITDA margins, earnings per share, and free cash flows in 2022.

With this acquisition, Ceco expands its addressable industrial water technology market by over USD 250m, with expected growth rates over 6% CAGR through 2025 for industrial oily-water and seawater reverse osmosis applications.

Ceco said it expects the Compass acquisition to unlock greater value by leveraging Ceco's international sales resources, existing US Navy expertise, and global engineering and production footprint.

In addition to market growth rates, the expected stricter water discharge regulations coupled with hard-to-attain international certifications are expected to drive higher sales.

Compass' installed base of over 8,000 systems worldwide has created a robust aftermarket parts and services business...

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