Xebec Acquires Tiger Filtration For $20.6 Million

Xebec Adsorption (TSX: XBC) this morning announced that it has closed the acquisition of Tiger Filtration. The firm is focused on aftermarket manufacturing of elements and filters for the compressed air and gas industry, with R&D to focus on expansion into the hydrogen and renewable natural gas space.

The acquisition will reportedly provide cost savings to Xebec as a result of displacing parts currently purchased by existing subsidiaries, while also providing margin and topline improvement. Tiger reportedly generated $4.6 million in revenues at an EBITDA margin of 42% for 2020, while also reporting a net income margin of 34%.

Under the terms of the arrangement, Tiger Filtration was acquired for a total figure of C$20.6 million, however it is unclear whether it was paid in cash or shares of the company. The transaction will see one of the founders, Gary Ashton, remain as managing director of the firm, while two other founders are to retire.

Xebec Adsorption last traded at $4.30 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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