GREY:XEBEQ - Post by User
Post by
Zipolitemexicoon Dec 10, 2020 1:56pm
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Post# 32078030
Lost in all the hydrogen hoopla
Lost in all the hydrogen hooplaXebec has also executed a non-binding letter of intent to acquire a leading industrial gas generation technology and manufacturing business, as well as a non-binding letter of intent to acquire a specialty compressed air and air treatment services company (together, the “LOI Acquisitions”). The aggregate purchase price for the LOI Acquisitions (excluding closing costs) is anticipated to be between $35 million and $60 million.
Lost in all the hydrogen hoopla were the announcements of these two acquisitions. These companies will provide Xebec with a significant revenue bump next year if they are completed this month or early next year. In their last three service company purchases they averaged $1.50 in revenue for every $1 spent on the purchase. Add in HyGear's revenue to the mix and wow!
My take on the industrial gas generation company is it will be in the US. They have manufacturing. Kurt wants a plant in the US to offset the ‘buy US first’ position of the Democrats. He talked about that in the Q3 webinar. Problem solved!!
Everything is coming together quickly. So much so that I have moved my 5 year sp target price to the 3 year mark.
Zipo