Water Intelligence buys back Portland franchise territories

Leak detection and remediation service Water Intelligence has reacquired territories in Portland, Oregon and certain parts of Washington State from a franchise holder within its American Leak Detection subsidiary.

Water Intelligence laid down $1.3m in cash for the purchase, funded from existing resources, and told investors on Tuesday that the franchise holder would remain in the ALD franchise system and continue to grow and pay royalties on its "significant remaining operations in southern Oregon".

The Portland region generated roughly $1.05m in revenues during the last trading year, bringing an estimated $350,000 in pre-tax profits for the group.

Water Intelligence said the region was on pace to exceed its 2017 numbers for both revenue and profits. The AIM-listed outfit expects the transaction to be immediately accretive to earnings.

Executive chairman Patrick DeSouza, said: "We are excited by the Portland region's opportunities to unlock synergies for our franchisees and corporate operations. Much like our sizeable Louisville transaction earlier this year that now integrates operations in the Midwest US, this transaction has a similar strategic profile."

"Finally, we are pleased that, like Louisville, there is a strong and growing base of revenue and profits in the acquired territory from which to build our broader business."

As of 0840 BST, Water Intelligence shares had picked up 3.45% to 360p.