Montreal-based GLV Inc. announced it has acquired all the outstanding shares of AJM Environmental Services Pty Ltd., a Sydney, Australia company that specializes in integrated technological solutions for industrial wastewater treatment and re-use, primarily for the food and beverage production and processing industry.The acquisition transaction was settled by a cash consideration of $16.2 M, financed using GLV’s credit facilities, and the assumption of a $1.9 M debt relating entirely to the building housing AJM’s Sydney-based headquarters.
AJM, founded in 1999, achieved a 50 per cent average annual revenue growth over the past three years, and recorded sales of approximately $16.0 M in its last fiscal year. As one of the leading Australian providers of water treatment solutions to the food and beverage industry, AJM serves several national multi-facility customers in this sector. AJM is also involved in certain other industries targeted by GLV’s Water Treatment Group, including the energy sector. Besides the Sydney headquarters, AJM’s organization includes three other offices in Australia and New Zealand as well as sales agents in Southeast Asia.
GLV’s president and chief operating officer Richard Verreault described the following advantages of the acquisition in a press release:
- The acquisition of AJM meets the Water Treatment Group’s objective of better balancing its revenues between the municipal and industrial segments.
- It enhances GLV’s offering and know-how in the provision of wastewater and water re-use solutions.
- It enables the company to integrate technologies that are complementary to those of its Water Treatment Group, although primarily tailored to the needs of the food and beverage industry – one of the industrial segments experiencing the greatest and fastest growing demand for wastewater treatment and re-use technologies worldwide. The integrated solutions offered by AJM in this niche market notably include dissolved air flotation and biological systems that are highly efficient in terms of operating costs and recycled water quality, particularly when combined with the membrane technology. For instance, AJM is currently implementing a 4 million liter/day integrated water re-use system for a large food processing company in Australia, that will allow it to re-use more than 70 per cent of its wastewater while achieving a level of purity superior to that of drinking water.
- The acquisition of AJM provides the Water Treatment Group with a broader operational base in Australia, a high-potential geographic market for water treatment solutions providers, considering its strong economy and lack of water resources
- AJM has a dynamic and qualified team working primarily in product engineering, project management and sales, and shares the same entrepreneurial culture as GLV. Its three founding officers and major shareholders are joining GLV’s Water Treatment Group and will contribute to the ongoing growth of this segment of its operations in Australia and to exporting the technologies and know-how they have developed to Europe and North America.