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BluMetric Environmental acquires Florida-based wastewater treatment firm

September 24, 2024
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BluMetric Environmental has acquired a Florida-based wastewater-treatment company as it looks to expand its reach in the U.S. and Caribbean markets. The Ottawa cleantech firm said Tuesday it has purchased Gemini Water from GSWS Holdco Inc. for US$5.05 million. BluMetric paid US$3 million in cash and issued about 2.3 million common shares to GSWS Holdco for Gemini Water, which is headquartered in Gainesville, Fla. The remaining balance of US$1.05 million will be paid through an earn-out over the next three years in equal amounts which are contingent on revenue growth, gross margin and EBITDA generation targets, BluMetric said in a news release. In addition, Gemini Water is entitled to an additional earn-out of US$50,000 on each US$1-million annual revenue growth in excess of US$7 million annual revenue for up to US$3 million. BluMetric CEO Scott MacFabe said the deal is part of his company’s long-term strategy to penetrate farther into the U.S. and Caribbean markets. “This acquisition improves our market accessibility by covering a combined population almost 10 times the size of Canada's in regions that are significantly more water-stressed,” MacFabe said in a statement. “Gemini Water has developed an impressive solution for managing water shortages within complementary customer verticals from private developments, and government infrastructure to the leisure market supporting resorts and international cruise lines.” Founded in 2015, Gemini Water designs, builds, installs, and commissions large-scale desalination and wastewater treatment systems using membrane-based technologies. According to a news release, Gemini Water systems have seven million gallons per day of potable and wastewater treatment capacity across 22 locations in the Caribbean and Texas. The company generated revenues of about US$7.3 million in its most recent fiscal year. It is currently installing a plant in the Caribbean nation of St. Kitts and Nevis that will be capable of desalinating two million gallons of water per day. BluMetric, which specializes in water and wastewater treatment, currently serves customers in the commercial and industrial, military, mining and government sectors in Canada and the U.S. It has worked on projects in more than 60 countries. The company posted revenues of $8.1 million in its fiscal third quarter ending June 30, up 17 per cent from a year earlier.