SYDNEY, AUSTRALIA: Australian-Singaporean water and waste-water treatment firm De.mem Ltd (ASX: DEM) has signed a binding settlement to purchase 100% inside the shares of Stevco Seals & Pumps Victoria Pty Ltd.
Consideration will be $1.25 million in money and $250,000 in DEM shares, plus an additional $180,000 in money and $30,000 in shares for Stevco’s inventory.
Established in and working since 2004, Stevco is a well-known provider of pumps, small water treatment equipment and associated operations & upkeep services to industrial and municipal clients in Victoria. Stevco has a reputation of supplying highest high quality merchandise and services.
Stevco’s long-term buyer base includes main industrial gamers from the meals & beverage, agricultural and heavy industrial sectors, in addition to a variety of municipalities in Victoria.
The firm generated approx. $2.3 million in annual revenues throughout the previous three enterprise years (on average) previous to the transaction. It generated approx. $330,000 in normalized EBITDA (adjusted for one-off items). Revenues are largely recurring and a significant percentage is generated from the rendering of operations & upkeep services. Stevco is based and operates out of their workshop in Epping/Melbourne, Victoria, which will proceed to function the bottom for De.mem’s operations in Victoria.
De.mem Chief Executive Officer Andreas Kroell said: “The acquisition of Stevco Seals & Pumps Victoria Pty Ltd is one other important milestone and completes our nationwide protection of Australia through strategic locations in Brisbane, Perth, Launceston and now, Melbourne, in addition to our nationwide service support capability.
Stevco brings a well-established client base in key goal sectors such because the meals & beverage segment to De.mem and opens up substantial alternatives for additional cross-selling of our superior product range, with our membranes and specialty chemicals inside the focus.
De.mem has constructed a track record of three extremely successful, bolt-on acquisitions since 2019. All have achieved substantial growth. We believe that we’re in an excellent place to make this transaction one other nice success, and look ahead to working with the Stevco team, to take their enterprise collectively to the subsequent level. With the enlarged group, our focus will now shift towards near-term, sustainable EBITDA break even.”
Stevco Director Steve Russell said: “We are delighted to conclude the transaction with De.mem. The mixture of our providing and buyer base with De.mem’s wider product vary round their innovative membrane applied sciences and specialty chemicals opens up substantial growth potential for our business.
De.mem is an ideal partner for our firm and the transaction provides us with the chance to take our enterprise to the subsequent level. We look ahead to collectively increasing the mixed enterprise inside Victoria and throughout Australia.”
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