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FormerXBC Inc XEBEQ

Xebec Adsorption Inc designs, engineers, and manufactures products that are used for purification, separation, dehydration, and filtration equipment for gases and compressed air. The company operates in three reportable segments: Systems, Corporate and other, and Support. Its product lines are natural gas dryers for natural gas refueling stations, compressed gas filtration, biogas purification, associated gas, engineering services, and air dryers. The company's geographical segments are United States, Canada, China, Other, Korea, Italy, and France.


GREY:XEBEQ - Post by User

Post by tamaracktopon Jan 15, 2021 2:25pm
410 Views
Post# 32307630

Inmatec

InmatecIt seems to me that while the HyGear acquisition generated some excitement, the Inmatec acquisition received a somewhat muted response. This is likely because financial considerations are as yet undisclosed.
   As of yet, very basically put, the market doesn't know if Xebec got a good deal. That will change, as more becomes known about the deal, and will add further impetus to the stock.
   By way of background, this is what TD says about Inmatec:

About Inmatec 
Inmatec is a Germany-based manufacturer of onsite nitrogen and oxygen generators with a worldwide installed base of 8,000 systems and provides aftermarket service and support with over 260 technicians (including technicians employed by its 40+ partners worldwide) actively servicing equipment across Europe. Inmatec's results will be consolidated as part of Xebec's Industrial Service and Support segment. The acquisition is expected to close on or around February 28, 2021


   The report goes on to say this about the acquisition:

   Transaction Size and Multiples: Although no financial information was provided in the December 17, 2020 press release, Xebec’s December 8, 2020 press release implies that the total consideration was ~$35 million, and we believe that this transaction was in line with its historical trend of paying between 4.0x and 6.0x EBITDAS for Industrial Service and Support acquisitions. As a result, we believe that the acquisition is accretive.

   It's quite possible that once the market has fully assimilated the implications of Hygear, it will turn its attentions to the implications of Inmatec, which will give the stock another boost.
   Then, once Inmatec has been assessed, the market will have to digest the completion of the remaining signed LOI, which is a compressed air services company, and which TD estimates will be an acquisition in the $25 million range.

    Xebec is keeping the analysts busy. They will be busy for a long time.

 
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