Xebec Adsorption Inc. acquires Tiger Filtration to leverage manufacturing business for renewable gases
Total consideration payable by Xebec is £12.0 million ($20.6 million CAD) and is subject to certain holdbacks, adjustments and time-based payments.
Sales & Marketing
MONTREAL — Xebec Adsorption Inc., a provider of clean energy solutions, announces that on June 11, 2021, it had closed the acquisition of all the outstanding shares of United Kingdom based Tiger Filtration (TFL). The acquisition of TFL will provide Xebec with an aftermarket manufacturing business for elements and filters. TFL’s R&D capabilities will also allow for expansion of its product portfolio to include filtration products for hydrogen and renewable natural gas (RNG).
Founded in 2004 by former Walker Filtration employees (Bob Thompson, Gary Ashton and Matthew Rowe), TFL has provided alternatives for the compressed air and gas industry. Two of TFL’s principals will retire post-transaction and Gary Ashton will remain with TFL as Managing Director and continue his leadership in sales and business development.
“We started TFL almost two decades ago and are happy to be handing over the company to Xebec, a company with a clear focus on clean technologies. I am particularly proud of the efficient manufacturing platform that we’ve created and that can successfully compete with the compressed air & gas multinationals. I believe that TFL will enable Xebec to not only capture immediate sales and costs synergies but also help create products for the energy transition, as our knowledge will facilitate the development of filter products for hydrogen and RNG,” said Gary Ashton, Managing Director, Tiger Filtration.
Total consideration payable by Xebec is £12.0 million ($20.6 million CAD) and is subject to certain holdbacks, adjustments and time-based payments. TFL had revenues of £2.7 million ($4.6 million CAD), an EBITDA margin of 42% and a net income margin of 34% for FY2020. Furthermore, Xebec expects that TFL will immediately provide cost savings by displacing parts currently bought by its existing subsidiaries within the Cleantech Service Network, HyGear, Inmatec and its headquarters in Québec.
“TFL provides Xebec with a unique opportunity to vertically integrate into the valuable aftermarket business for filters and elements. The acquisition will be immediately accretive and bring TFL’s products to our service subsidiaries which will be leveraging our sales and distribution networks to increase revenues. Ultimately, the acquisition positions us well as we look to transition from being predominantly an equipment supplier to a support and service-oriented organization with recurring revenue streams for renewable and low carbon gases,” stated Kurt Sorschak, Chairman, CEO and President of Xebec Adsorption Inc.