Pure Technologies Ltd. announced Dec. 30 that it closed its acquisition of the business and related assets of E-MAC Corrosion Inc., a provider of oil and gas pipeline inspection and corrosion prevention services.
“We are pleased to complete this transaction before the end of the year and welcome all new employees to the Pure family,” said Jack Elliott, president and CEO of Pure Technologies. “We look forward to integration activities in the coming days and to the expected benefits to PureHM, and the Company overall, in 2017 and beyond.”
Pure announced its intent to acquire E-MAC on Dec. 21 for consideration of $4.60 million, consisting of $3.45 million in cash and $1.15 million in restricted shares of Pure. For the financial year ended Jan. 31, 2016, E-MAC generated revenue of $6.8 million and currently has 18 employees.
“This acquisition represents another step in enhancing the abilities and performance of our rapidly growing PureHM division,” Elliot said. “We are pleased with the opportunity to augment the robust growth of our PureHM business with a well-run company that has been successful in a very competitive and fragmented market. E-MAC has built a profitable business that complements PureHM through an improved customer offering, increased capacity to perform additional pipeline surveys and recurring work with new customers. Through the positive working relationship we’ve enjoyed with E-MAC over the years, we anticipate integration to be seamless while accelerating our overall growth plans. We expect this acquisition to be immediately accretive to Pure.”
Since 2006, E-MAC has licensed PureHM’s industry-leading Spectrum XLI technology for its indirect inspection surveys including cathodic protection. In addition, E-MAC provides pipeline owners with comprehensive corrosion prevention programs including consulting, system management and associated product sales.
Through the acquisition of E-MAC’s business and related assets, PureHM significantly improves its position within the North American pipeline corrosion sector, becoming an end-to-end solution provider with the added benefit of leveraging the Company’s leading technologies and new innovative products. E-MAC is headquartered in Edmonton, Alberta, with local offices in Calgary, Alberta, and Surrey, British Columbia.