How good is this? Only a small acquisition but a strong showing of management's intent.
In order to assist the Company and this new business unit in particular, to fast-track the growth
in capabilities and footprint, Parkway Process Solutions has agreed to acquire a small but
profitable water treatment business based in Western Australia. The business being acquired
has been in operation for over a decade, has an established client base with approximately
100 customers and provides the Company with significant and immediate growth
opportunities, in line with Company’s aspirations for Parkway Process Solutions. The business
being acquired has generated annual revenues in the order of $1 million, including in the most
recent reporting period (FY20). The upfront acquisition cost (inclusive of on-site plant,
equipment and stock) is $420,000 before adjustments, with a further payment of up to
$100,000 payable at the 12-month anniversary, should the underlying business continue to
generate net revenues of at least $1 million in the 12 months, immediately following
settlement. The Company intends to provide further details upon completion of the acquisition
which is currently scheduled to occur later this month.
(20min delay)