Xebec Adsorption expands US manufacturing capacity with acquisition of Nortec
Xebec’s manufacturing footprint will expand with an 18,500 sq. foot facility in Maryville, Tennessee, and will provide the company with key personnel to establish a “Center of Excellence”
Technology / IIoT
MONTREAL — Xebec Adsorption Inc., a provider of clean energy solutions, announced that on April 30, 2021, it closed the acquisition of all the outstanding shares of Tennessee based Nortekbelair Corporation. Nortec’s principal, Mike Zarif, Ph.D, will remain with Nortec after the acquisition and continue his focus on R&D and product development within the company. With this acquisition, Xebec’s manufacturing footprint will expand with an 18,500 sq. foot facility in Maryville, Tennessee, and will provide the company with personnel to establish a “Center of Excellence” for its dehydration products comprised of compressed air dryers, renewable natural gas dryers, hydrogen dryers and support its Cleantech Service Network.
Total consideration payable by Xebec is approximately $8.5 million CAD through a combination of cash on hand, of which $2.6 million CAD was paid in cash on closing, and 735,838 common shares of Xebec at a price of $4.385 per common share were issued to the seller. The total consideration is subject to certain holdbacks, adjustments and time-based payments. Nortec had revenues of $4.5 million CAD for FY2020 and as with previous acquisitions, Xebec expects that Nortec’s growth and profitability could be improved with product, sourcing and back-office synergies.
“After spending more than 30 years in the compressed air industry and founding Nortec more than a decade ago, I am excited to be embarking on this journey with Xebec. I believe that our manufacturing capabilities will be valuable as Xebec looks to grow its presence in the United States. I am also looking forward to playing a key technical role in helping the company establish a dedicated center to showcase its expertise as it looks to produce more products in the U.S.,” stated Mike Zarif, Ph.D., President and CEO, Nortekbelair Corporation
“Nortec is a strategic acquisition for us because it will immediately increase our manufacturing capacity. Given the increasing importance of local sourcing and servicing, we are glad to have a manufacturing setup in the United States. Mike and the Nortec team have done an excellent job in growing the business and creating a foundation that will help us bring new products to the U.S market and increase the production of existing ones. I am thrilled that Mike has decided to be a part of the Xebec family and he will play an important role in supporting our future acquisitions,” said Kurt Sorschak, Chairman, President and CEO, Xebec Adsorption Inc.