Water Intelligence announces strategic franchise moves in California and New York
Water Intelligence plc (AIM: WATR.L), a global leader in precision leak detection and remediation solutions, has unveiled significant developments within its American Leak Detection (ALD) subsidiary. The company has reacquired its Fresno, California franchise and sold a new franchise for Albany and Saratoga in New York, marking a strategic expansion of its operations in key American markets.
Strategic Expansion in Fresno, California:
The reacquisition of the Fresno franchise by Water Intelligence involves a purchase price of $2.9 million, payable over two years. This includes $2.0 million upfront and an additional $0.9 million on the first anniversary. The decision was based on the franchise’s 2023 pro forma, which reported $1.8 million in revenue and $0.6 million in adjusted profit before tax. Fresno’s strategic location in the heart of US agribusiness, coupled with growing market demand due to climate-related challenges, makes this a key move. Water Intelligence plans to bolster the operation with corporate resources and proprietary technologies like ALD’s Ditch Liner and Pulse diagnostic tools, enhancing service offerings in agricultural and residential sectors.
Launch of a New Franchise in Albany and Saratoga, New York:
Concurrently, Water Intelligence has initiated a new franchise in New York’s Capital District, encompassing Albany and Saratoga. This move, involving an upfront consideration of $0.1 million, is aimed at leveraging ALD’s national brand presence and quality solutions in a region known for its resorts, horse racing, and viticulture. The franchise is expected to start generating royalty income from sales starting in July, following the completion of training programs. This strategic location offers a springboard for further expansion throughout upstate New York.
Dr. Patrick DeSouza, Executive Chairman of Water Intelligence, expressed satisfaction with these transactions, highlighting their alignment with the company’s growth strategy and their potential to drive sustainable organic growth. He noted, “We are very pleased with the two transactions announced today because they reinforce our franchise value proposition and brand. Moreover, both are expected to contribute to sustainable organic growth for the Group.”
These strategic moves by Water Intelligence not only enhance its operational footprint but also demonstrate its commitment to expanding service capabilities and addressing increasing demands for water conservation. With a clear focus on growth and sustainability, Water Intelligence is poised to strengthen its market position and deliver enhanced shareholder value through its innovative solutions and strategic franchise operations.