Xebec Expands Cleantech Service Network with Acquisition of North Carolina Based Air Flow

Third acquisition in Xebec’s strategy to develop a North American service footprint for renewable natural gas and hydrogen installations

MONTREAL, Aug. 04, 2020 (GLOBE NEWSWIRE) -- Xebec Adsorption Inc. (TSXV: XBC) (“Xebec”), a global provider of clean energy solutions is pleased to announce that Xebec Holding USA Inc, a wholly-owned subsidiary of Xebec Adsorption Inc., has entered into an agreement effective July 31^st, 2020, to acquire all of the outstanding securities of Enerphase Industrial Solutions, Inc. (doing business as “Air Flow”). Air Flow’s principals will remain with Air Flow after the acquisition to optimize their integration into Xebec’s industrial service and support business and to grow the operation over the coming years.

Total consideration payable by Xebec is approximately $6.0M, subject to certain holdbacks, adjustments and time-based payments. Air Flow had revenues of approximately $10.1M for the fiscal year ended December 31, 2019 and revenues are estimated to grow organically to $11.5M in 2020 with an EBITDA margin of approximately 10%. Xebec expects that Air Flow’s growth and profitability could be improved with additional supply chain and cost optimizations, product synergies and the back-office expertise Xebec has built from prior acquisitions.

“When Xebec approached us, we saw a unique opportunity to be part of a mission that was larger than us. Climate change is a growing concern and I saw how our team and experience in compressed air service could translate into being a strong value add to help service and support Xebec’s upcoming renewable natural gas and hydrogen systems. North Carolina is one of the top 10 agriculture producing states which represents significant potential for RNG projects. Air Flow is well positioned with three points of presence to offer truly local support to future dairy and hog farmers, municipalities, and industry,” states B. Stanton Shelton, III, President and CEO, Air Flow.

Air Flow is a leading distributor and service provider of compressed air equipment in North Carolina. Incorporated in 1981, the company brings decades of industry experience and has built long standing relationships with major manufacturers and has developed a significant service footprint through numerous equipment installations. Air Flow’s focus is on preventative maintenance solutions, air energy system audits and analysis, and timely machine rentals, and parts and service.