• Xebec Adsorption (XBC) is set to launch a new hydrogen segment with the acquisition of Netherlands-based HyGear Technology and Services
  • The company will wholly purchase Green Vision Holding BV – HyGear’s parent organisation – for a total of €82.0 million (approximately C$127.3 million) and the assumption of €18.4 million ($28.6 million) in debt
  • To facilitate the transaction, Xebec has also launched a $100 million bought deal public offering and a separate $50 million placement, for gross proceeds of $150 million
  • In addition to the HyGear purchase, the company has also two letters of intent to acquire an industrial gas generation technology and manufacturing business and a specialty compressed air and air treatment services company
  • Xebec Adsorption is currently down 0.15 per cent to C$6.84 per share

Xebec Adsorption (XBC) is set to launch a new hydrogen segment of its business with the acquisition of Netherlands-based HyGear Technology.

The Montreal-based provider of clean energy solutions will acquire 100 per cent of Green Vision Holding BV – the parent organisation of HyGear – for a total of €82.0 million (approximately C$127.3 million) and the assumption of €18.4 million ($28.6 million) in debt.

Of the purchase amount, HyGear’s shareholders will receive roughly $65.2 million in cash and 10.3 million common shares in Xebec at a price of $6.03 each.

Xebec said the HyGear acquisition positions the company to execute and accelerate its renewable gas strategy, and opens the door to new markets with the addition of HyGear’s hydrogen technology, which will be used to launch a commercially viable green hydrogen product offering.

“HyGear is strategic in nature and gives us an enormous amount of potential to grow as we accelerate our entry into the industrial hydrogen and hydrogen fuel markets,” said Kurt Sorschak, Chairman, CEO and President of Xebec Adsorption.

“I couldn’t be happier with the quality of this acquisition because of its sustainable business model and its ability to deliver attractive profitability today,” he added.

While the purchase of HyGear remains subject to regulatory approval, the deal has been approved by Xebec’s Board of Directors and is expected to close on or around December 30, 2020.

To facilitate the transaction, Xebec has also launched a bought deal offering to raise $100 million by issuing 17.25 million subscription receipts at a price of $5.80 each.

The company has also signed a private placement agreement with Caisse de dépôt et placement du Québec (CDPQ) to raise a further $50 million.

“By taking a stake in Xebec, CDPQ is contributing to the development of Québec expertise in transitioning toward sources of renewable energy,” said Kim Thomassin, Executive Vice-President and Head of Investments in Québec and Stewardship Investing at CDPQ.

“Xebec possesses high-quality assets and has attained an enviable position in its industry, and CDPQ is pleased to support its international expansion,” he concluded.

A portion of the proceeds will also be used to fund two additional acquisitions. A non-binding letter of intent has already been signed for the purchase of an industrial gas generation technology and manufacturing business, as well as a specialty compressed air and air treatment services company.

Collectively, these two acquisitions are expected to be worth between $35 million and $60 million.

Xebec Adsorption is currently down 0.15 per cent to C$6.84 per share at 9:49am EST.

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