Energy services provider Green Compliance (GC) is set to acquire Waterchem for £5.5 million in cash and stock.
Energy services provider Green Compliance is set to acquire Waterchem for £5.5 million in cash and stock.
Waterchem is primarily engaged in the provision of water hygiene and water treatment services to facilities management companies, hospitals, universities and local authorities. It reported revenue of £7.6 million and profit before tax of £1.4 million in the financial year ending 31 December 2009.
The deal, which in subject to shareholder approval, follows Green Compliance’s £1 million acquisition last month of CEA Link, a software company that specialises in energy certification and other compliance services.
John Prowse, CEO of Green Compliance, says that the Waterchem deal is indicative of the company’s shift in strategy to focusing on ‘blue collar compliance markets’.
In the six months ending September 2009, Green Compliance reported revenue of £346,000 and pre-tax losses of £401,000.