Xebec Acquires Tennessee Manufacturer For C$8.5 Million

Xebec Adsorption (TSX: XBC) is increasing its presence in the southern USA. The company this morning announced the acquisition of Nortekbelair Corp, whom is more commonly known as Nortec, in a transaction pegged at C$8.5 million.

Nortec is focused on the compressed air industry, with a focus on “dehydration products.” The company manufacturers compressed air dryers, hydrogen dryers, and renewable natural gas dryers, with its products used in applications that range from small shops to major manufacturing plants.

The transaction is expected to support Xebec’s Cleantech Service Network, while also adding manufacturing capacity in the southern US.

The transaction will see the company acquire the Tennessee-based operator for a combination of both cash and shares. A total of $2.6 million is expected to be paid on closing, along with the issuance of 735,838 common shares at a price of $4.385 per share. The company reportedly saw revenues of C$4.5 million in 2020.

Xebec Adsorption last traded at $4.33 on the TSX.

Information for this briefing was found via Sedar and Xebec Absorption Inc. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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