March 29, 2018
Kontrol Energy Corp. has entered into a Letter of Intent to acquire Target Emissions Services.
“We are looking forward to completing this acquisition as it is a strong strategic fit with our existing subsidiary ORTECH Consulting Inc.,” says Paul Ghezzi, CEO of Kontrol Energy. “Expanding our emission monitoring and solutions vertical in Canada, and gaining a growing footprint in the U.S.A., is part of our long-term strategy.”
Target has been providing the Canadian and U.S. market with solutions for emissions and process monitoring applications for more than 20 years. The Target has averaged revenues (unaudited) of over $5 million and normalized EBITDA of approximately $900,000 over the past three years.
The purchase price is $3.35 million is subject to working capital adjustments with a vendor take back of up to approximately $500,000 for 12 months at an interest rate of 6 per cent.
The acquisition is subject to due diligence, applicable approvals and a definitive purchase and sale agreement, and is anticipated to be completed in 120 days or less.
(Kontrol Energy Corp.)