Water Intelligence acquires US plumbing outfit Shanahan Plumbing
Leak detection and remediation solutions provider Water Intelligence has acquired US-based plumbing company Shanahan Plumbing for $800,000 in cash.
Water Intelligence said on Thursday that the acquisition of Shanahan Plumbing, which has operations in both Connecticut and New York, builds upon its growing American Leak Detection in two ways.
First, the AIM-listed group's growth strategy includes increasing its range of solutions for its residential and B2B customers, while secondly, the group noted that in an inflationary environment, operating scale was "of even greater importance".
The purchase price includes all assets required to conduct operations, including trucks, equipment and licenses, and was based on Shanahan's 2021 statement of income of $1.9m in revenue and $200,000 in adjusted pre-tax profits.
Chairman Dr Patrick DeSouza said: "After four strong corporate finance transactions over the last eighteen months, the group has the balance sheet to support our growth strategy.
"Today's transaction puts capital to work in ways that not only reinforce our long-term strategy but also address short-run priorities for driving scale and operating efficiencies to offset inflationary pressures. Given strong market demand for our water and wastewater infrastructure solutions, we will continue to execute our business plan."
As of 0925 BST, Water Intelligence shares were down 0.14% at 709.0p.
Reporting by Iain Gilbert at Sharecast.com