Deal set for Hydro International to acquire Hydro-Logic
2nd March 2016
A conditional agreement has been put in place that will see Hydro International acquire Hydro-Logic, next week.
Hydro-Logic, founded in 1985, provides instrumentation and information systems for water environment monitoring applications, including data logging, telemetry and software. Hydro-Logic services, a specialist hydrological and water resource management consultancy, uses Hydro-Logic devices to collect and analyse real-world data and apply the findings to support planning decisions, optimise hydraulic and network design, increase water system efficiencies and reduce flood and pollution risk. Rod Hawnt, Managing Director of Hydro-Logic and Colin Fenn, the Managing Director of Hydro-Logic Services, will be staying with the business.
The Hydro-Logic businesses generated £3.6m in revenues for the year ended 31 May 2015. The acquisitions are expected to complete on 8th March 2016, and will be funded from existing cash and additional debt facilities.
Hydro-Logic Limited will be acquired for an initial nominal sum plus the assumption of debt of £429,000, plus an additional deferred consideration of 11.5% of sales incorporating the acquired intellectual property across the first three years. This additional consideration is capped at £2.0M.
The business of Hydro-Logic Services LLP will be acquired for an initial amount of £916,000, plus an additional deferred consideration calculated on the profitability of the business across the first three years. This additional consideration is capped at £2.0M.
Michael Jennings, Chief Executive of Hydro International plc, said:
“This acquisition is an important strategic step in extending our core capabilities. Hydro-Logic’s technology, expertise and experience will broaden and deepen many aspects of our business. The new products and services that we can offer will give unprecedented insight into the design, installation and operation of water management products, saving money for customers, reducing risk and helping them to protect the environment.”
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