H2O Innovation to expand specialty products business through Genesys acquisition
H2O Innovation through a wholly-owned UK subsidiary has agreed to acquire Genesys Holdings and its subsidiaries, Genesys Manufacturing, Genesys International and Genesys North America that develop and manufacture specialty chemicals for water treatment.
The acquisition valued at £16.95million (C$28.39million) will add to H2O Innovation’s specialty chemicals line of products and complements the company’s existing manufacturing capabilities in Vista, California, with chemical blending facility in Cheshire, UK.
Genesys, established in 2001, manufactures more than thirty-five diversified products at its Cheshire facility and also provides chemicals and services to the membrane industry in around 70 countries across the globe.
The UK-based companies develop, manufacture and distribute specialty reverse osmosis membrane chemicals, antiscalants, cleaners, flocculants and biocides.
Frédéric Dugré – president and CEO, H2O Innovation said: “The combination of Genesys’ product offering with our existing PWT product line will create a leading supplier of specialized chemicals for membrane water treatment plants.
“Once the acquisition is completed, H2O Innovation will deliver to clients an even broader portfolio of products and solutions through one of the largest distribution networks in the world.
“The expanded operations and network will also improve our efficiency, when it comes to manufacturing, warehousing and freighting.”
Post-acquisition, the distribution network of H2O Innovation is expected to reach one hundred distributors, including both emerging and strategic markets.
H2O Innovation will fiancé the acquisition through committed credit facility as well as proceeds from an equity offering for gross proceeds of at least C$22 million.
Ted Darton – president and CEO, Genesys said: “Although Genesys is highly profitable and has grown strongly over the years, we realize that the next stage in growth can only be achieved in combination with a larger organization.
“Our team has been aware of H2O Innovation for many years and consider them as the perfect partner.
“As there are significant areas of synergy for both companies, we fully endorse the acquisition knowing it will be highly beneficial to all those involved.”
Subject to customary conditions, the acquisition is expected to close on or about November 12, 2019.