De.mem Limited (ASX: DEM) has announced it will acquire Geomembrane Technologies Inc. (GTI) for CAD$6.5 million (approximately AUD$7.2 million). De.mem specialises in providing water and wastewater treatment solutions. They cater to the municipal, industrial, and resources sectors, utilising a range of proprietary technologies.
The acquisition of GTI will provide De.mem with access to GTI’s covered anaerobic lagoon (CAL) technology. CAL is a waste water treatment solution particularly for the food and beverage industries. GTI has a significant installed base in North America. According to De.mem, this acquisition is expected to be immediately earnings accretive. GTI is expecting revenue of CAD$7.5 million (approximately AUD$8.3 million) for the financial year ending December 2024, with an EBITDA margin of approximately 15%.
De.mem plans to fund the acquisition through a combination of existing cash reserves and a new debt facility. The company says it anticipates the deal will strengthen its market position in North America. It will also provide cross-selling opportunities for De.mem’s existing suite of water treatment technologies. The final closing of the acquisition is expected to occur in June 2024, subject to customary closing conditions.
This acquisition aligns with De.mem’s growth strategy of expanding its technology portfolio and geographic reach. Management expects the integration of GTI to enhance its overall service offering and drive long-term shareholder value. Further details can be found on De.mem’s website.
