Kontrol Energy Acquires Efficiency Engineering for USD1.8 Million

Published: Aug 08 2017
Deal Summary

Kontrol Energy Corp., a provider of energy efficiency solutions and technology, has acquired Efficiency Engineering Inc., a provider of engineering and energy efficiency services, for a purchase consideration of CAD2.23 million (USD1.76 million).

Under the terms, Kontrol Energy paid CAD0.63 million (USD0.5 million) in cash on closing and CAD0.9 million (USD0.71 million) by way of issuing 1,210,816 million common shares at a deemed price of CAD0.7433 (USD0.6) per share. An additional CAD0.7 million (USD0.55 million) of the purchase price is subject to a 15 month holdback to accommodate post-closing purchase price adjustment and indemnity obligations of the vendors. Of the aggregate purchase price, CAD0.535 million (USD0.42 million) is comprised of net working capital. Following the transaction, the existing skilled operational leadership team will remain in place.

Efficiency Engineering has been operating for more than 20 years and provides engineering services to industrial, municipal and commercial building owners across Canada. The company provides its customers with detailed energy efficiency analysis, energy audits, management of facility system solutions, electrical and mechanical design and energy conservation studies. Based on its unaudited financial statements for the fiscal years 2015, 2016 and 2017, Efficiency Engineering generated average annual revenues of approximately CAD2 million (USD1.58 million) and approximately CAD0.45 million (USD0.36 million) of average annual Net Earnings before tax (EBT).

This acquisition provides a strategic fit to enhance Kontrol Energy’s capacity to deliver turn-key energy efficiency solutions for its customers while providing a corresponding reduction in greenhouse gas emissions.

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