CECO Environmental Corp. acquired Compass Water Solutions, Inc. for $12.5 million.
May 09, 2022
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CECO Environmental Corp. (NasdaqGS:CECE) acquired Compass Water Solutions, Inc. for $12.5 million on May 3, 2022. The purchase price was approximately $12.5 million and financed using a combination of cash and debt, under the Company's existing Credit Facility. Approximately 70 percent was paid at closing with the balance to be paid over a two-year period. Compass generated approximately $11 million of revenue in 2021. CECO expects the acquisition to be accretive to total company EBITDA margins, earnings per share, and free cash flows in 2022. The McLean Group acted as financial advisor and O'Melveny provided legal counsel to Compass. BDO USA LLP and Dykema Gossett PLLC acted as advisors to CECO.
CECO Environmental Corp. (NasdaqGS:CECE) completed the acquisition of Compass Water Solutions, Inc. for $12.4 million on May 3, 2022. The total consideration of $12.4 million consist of for $9 million in cash, which was financed with a draw on the CECO's revolving credit facility, and $2 million in notes payable over two years. As additional consideration, the former owners are entitled to earn-out payments of $1.4 million based upon a multiple of specified financial results through April 30, 2023.
CECO Environmental Corp. is an environmentally focused, diversified industrial company. The Companyâs segments include Engineered Systems, which serves the power generation, hydrocarbon processing, water/wastewater treatment, oily water separation and treatment, marine and naval vessels, and midstream oil and gas sectors. The segment offers environmental and equipment protection solutions with its highly engineered platforms, including emissions control, fluid bed cyclones, thermal acoustics, separation and filtration, and dampers and expansion joints, and Industrial Process Solutions segment, which serves the industrial sector with solutions for air pollution and contamination control, fluid handling, and process filtration in applications such as aluminum beverage can production, automobile production, food and beverage processing, semiconductor fabrication, electronics production, steel and aluminum mill processing, wood manufacturing, desalination, and aquaculture markets.
CECO ENVIRONMENTAL CORP. 
