- Clean energy company Xebec Adsorption (XBC) has agreed to acquire all outstanding shares in air compression business The Titus Company
- The Titus Company has a varied customer base, including Fortune 500 companies and the United States Navy
- Xebex will pay approximately C$8 million in total consideration for the acquisition of the Pennsylvania-based business
- After the acquisition, Xebec will integrate Titus into its industrial service and support business and continue to grow its operations
- Xebec Adsorption (XBC) is up 0.97 per cent and is currently trading for $5.20 per share
Clean energy company Xebec Adsorption (XBC) has agreed to acquire all outstanding shares in air compression business The Titus Company.
Based in Pennsylvania, USA, The Titus Company is in partnership with small and large companies in its home state, and in the neighbouring states of Delaware and New Jersey. By acquiring Titus, Xebec can expect to expand the coverage of its Cleantech Service Network to this north-eastern region of the US.
The compressed air company has a varied customer base, which includes Fortune 500 companies like DuPont and Air Products and Chemicals. Titus is also the largest supplier of air dryers to the United States Navy.
For the 2019 financial year, Titus generated approximately $12.3 million in revenue, with an EBITDA of roughly 13.5 per cent. The business is on track to achieve similar revenues and profitability for 2020’s financial year.
Xebec will pay approximately C$8 million in total consideration for the acquisition of Titus. However, this amount is subject to certain holdbacks, adjustments, and time-based payments.
After the acquisition, Xebec will integrate Titus into its industrial service and support business, and continue to grow its operations.
Xebec Adsorption’s COO, Dr Prabhu Rao, said the company was happy to welcome another member to the Xebec family.
“Titus has a stellar track record in the compressed air service industry, with several Fortune 500 companies and the US Navy as customers.
“Their expertise and presence will be helpful in rounding out our capabilities on the US east coast as more customers explore decarbonisation pathways that include renewable gases,” he said.
Xebec Adsorption (XBC) is up 0.97 per cent and is trading for $5.20 per share, as of 10:35am EDT.