Hydro International gobbles up Hydro-Logic

(ShareCast News) - Hydro International was in expansion mode on Monday, announcing it had entered into conditional agreements to acquire Hydro-Logic Ltd and the business of Hydro-Logic Services, collectively Hydro-Logic.The AIM-traded provider of environmentally sustainable water management solutions said Hydro-Logic was founded in 1985 by its current managing director, Rod Hawnt.Its products included instrumentation and information systems for water environment monitoring applications, including data logging, telemetry and software.Hydro-Logic Ltd was to be acquired to an initial nominal sum, plus the assumption of debt of £429,000, as well as an additional deferred consideration of 11.5% of sales incorporating the acquired intellectual property across the first three years.That additional consideration was capped at £2m, Hydro International's board said.The business of Hydro-Logic Services was to be acquired for an initial amount of £916,000, plus an additional deferred consideration calculated on the profitability of the business across the first three years, which was also capped at £2m.Both businesses generated £3.6m in revenues for the year ended 31 May 2015. The acquisitions were expected to complete on 8 March, and were to be funded from existing cash and additional debt facilities."This acquisition is an important strategic step in extending our core capabilities. Hydro-Logic's technology, expertise and experience will broaden and deepen many aspects of our business," said Hydro International chief executive Michael Jennings."The new products and services that we can offer will give unprecedented insight into the design, installation and operation of water management products, saving money for customers, reducing risk and helping them to protect the environment," he added.Rod Hawnt and Colin Fenn, the managing director of Hydro-Logic Services, would be staying with the business post-acquisition, it was confirmed.