Ottawa’s Clearford Water Systems announced another acquisition this week as the company continues its push to become a full-service water utilities and technology firm.
In a release after markets closed on Monday, Clearford (TSX-V:CLI) said that it has acquired a water utility company in the Niagara Region. The unnamed private firm’s assets include permits and infrastructure for water intake from Lake Erie as well as a drinking water treatment plant and distribution pipe network.
The acquired company will form the foundation of a new subsidiary, Clearford Water Utility, which will aim to absorb other water and wastewater assets in Ontario.
This most recent acquisition aligns with Clearford’s current M&A strategy, first announced roughly a year ago. The company wants to offer a full suite of water and wastewater solutions to municipalities and private developers – much like a utilities operator – by designing, building and operating water and wastewater treatment facilities on a long-term basis.
It’s also looking to reduce its reliance on contractors by bringing more services in-house.
This week’s announcement marks Clearford’s second acquisition in the past year, having previously acquired an Ontario-based wastewater solutions and equipment supplier in a C$7.8 million deal.
Terms of the all-cash acquisition were not disclosed, though Clearford did note that it entered into two new loan agreements in conjunction with the deal. Cash raised from the two 10-year loans totals US$2.26 million. Clearford announced it had also received final approval for a previously announced C$1.65 million convertible debenture.