To be honest my initial reaction on seeing the rather generic...

To be honest my initial reaction on seeing the rather generic nature of the business (low tech and not a lot of barriers to entry) and web-page with the poor layout & design and stock images was not overly positive.

This acquisition certainly does not excite the market the same way as cutting edge technology (no mention of BNPL, graphene or zeolite) but it is these types of businesses that built companies like Berkshire Hathaway

AND there are certainly some great aspects to this acquisition;

- Purchase is from a discretionary trading trust , so we're just taking assets, liabilities, people and contracts - not taking on an operating company with all the associated "other baggage".
- Purchase price looks very favourable - depending on the debt and other liabilities assumed;
- The owner has an impressive cv, having worked for NALCO - hopefully post earn-out he'll remain
- Solid work history, 13 years of operations.with what appears to be very well maintained facilities in a good location (first impression looks like a very well run and professional operation).


@Ricmond88, @Swelly

Total agreement, it does look more like an acquisition primarily for human capital (a bit like EGL's recent acquisition to bag a CEO) and maybe access to chemical / product distributor agreements, with the added bonus of having a profitable underlying business.

I particularly like this bit -

"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."

which if you put it together with, @tin_shed_trader pointed out earlier from the earlier Corporate Update, provides PWN with a lot of potential irons in the fire

"The Company is also in negotiations to acquire certain rights to an additional wastewater
treatment technology that has synergies with the existing technology portfolio, as well as
potential applications in the sustainable destruction of certain wastewater contaminants,
including PFAS3 and related compounds. The acquisition cost is expected to be limited to the
Company providing certain commercialisation related services, supported by the Company’s
BPaaS™ platform."


Maybe the next piece of the jigsaw is the purchase of a small process / mechanical engineering facility in order that PWN will be able to assemble / operate / maintain the "mini aMES plants" as a total solution.