Ottawa cleantech firm Clearford acquires Ontario water utility

Lake Erie
An Ontario community on Lake Erie, pictured for illustrative purposes only.

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.