QUEBEC CITY, Dec. 15, 2021 (GLOBE NEWSWIRE) -- (TSXV: HEO) – H2O Innovation Inc. (“H2O Innovation” or the “Corporation”) is proud to announce it executed this morning all the documents related to the acquisition of JCO, Inc. (“JCO”) and of Environmental Consultants, L.L.C. (“EC”, and together with JCO, the “Targets”) from arm’s-length third parties. Each of the Targets offers complete operation, maintenance and management (“O&M”) services to municipal and industrial water and wastewater clients from the same region, the Hudson Valley Region in the State of New York.
The acquisition of the Targets, which were owned and operated separately, complements H2O Innovation’s current business activities in the Northeast of the United States and solidifies its position in the North American O&M market. With more than 70 years of combined experience, H2O Innovation, JCO and EC position themselves as significant players in the O&M sector in the State of New York with a total of nearly 200 customers.
JCO and EC both operate some sizeable industrial facilities which will grow the industrial customer base of H2O Innovation’s O&M business line. Industrial streams are often more complex to treat and could lead to opportunities for H2O Innovation’s WTS business line to offer added value membrane solutions which could ultimately lower the operating expenses for the customers. It is expected that this consolidation will foster synergies as the customers currently served by H2O Innovation, JCO, and EC will be offered value-added services that should potentially generate new business opportunities, given the Corporation’s global breadth of technology, its operation expertise, and its aftermarket support. Additionally, JCO and EC operate collectively numerous membrane plants that may benefit from the specialty chemicals of H2O Innovation; which specialty chemicals allow membrane water treatment facility to run longer without cleaning, thus contributing to lower operating expenses.