Scidev Ltd - SciDev (ASX:SDV) Extends its Presence in the Water and PFAS Sector Through the Haldon Industries Acquisition
Scidev Ltd (ASX:SDV)

SciDev (ASX:SDV) Extends its Presence in the Water and PFAS Sector Through the Haldon Industries Acquisition

Published Mar 29, 2021

What happened?


What has happened?

SciDev (ASX:SDV) today announced that they have entered a Business Sale Agreement to acquire the business of Haldon Industries Pty Ltd (Haldon), an Australian based environmental engineering solutions company focussed on the water treatment, remediation and persistent organic pollutant sectors. The acquisition of Haldon will have a maximum consideration of A$16.9m, with Equity on completion and Cash subject to future milestones. Additionally, the company announced that it will issue shares to Haldon principals at A$0.80 per share with a cash payment of A$1.7m on completion subject to a working capital adjustment.

What are the key highlights?

  • SciDev announced the strategic acquisition of Haldon industries, an Australian based environmental engineering solutions company focusing on the water and persistent organic pollutant sectors. The Company announced that the deal would have a maximum consideration of A$16.9m, with equity on completion of the deal and cash subject to certain future milestones.
  • Another announcement out from SciDev highlighted the issuance of shares to current Haldon principles. Shares will be issued to relevant Haldon parties at A$0.80 per share with a cash payment of A$1.7m on completion, subject to a working capital adjustment. Additional cash payments will be made from Haldon delivered cashflow pending FY21, FY22 and FY23 performance and is subject to revenue and minimum EBITDA targets.
  • In their announcement, the Company notes that Haldon has created a strong presence providing innovative solutions in the Per- and Polyfluoroalkyl (PFAS) market in Australia via their mobile treatment plants. SciDev further highlighted that Halden's solutions are world-class, successfully removing PFAS to undetectable levels while reducing the waste volume by c.20,000 times, which is 100 times greater than existing commercial alternatives.
  • Furthermore, Haldon delivered A$8.13m of Revenue in FY20 and generated an EBITDA of more than A$3m on an unaudited, cash basis. As such, SciDev believes that Haldon's current products and services are highly complementary to their own, paving the way for potential synergies in the future.
  • Additionally, there was noted that Sean Halpin and Jake Reardon would take senior leadership roles within SciDev, and the remaining Haldon employees will join operational roles in the water segment. This move negates the need to hire new employees and allows the Haldon operations to integrate seamlessly into the existing SciDev business unit.
  • Lastly, there was highlighted that the acquisition of Haldon provides SciDev with presence and scale in the infrastructure, water and wastewater verticals via Haldon's key services of water treatment, remediation, groundwater dewatering and onsite liquid waste treatment. This approach tied in neatly with SciDev's future expansion strategy currently in place.

Haldon’s principals and Executive Directors, Sean Halpin and Jake Reardon, also left a comment:

“This is a really exciting opportunity for the Haldon team. It is rare that two companies share a common approach and culture and we are really looking forward to the future as part of SciDev. We firmly believe that access to SciDev’s existing customer and knowledge base will strengthen our current operations and allow us to continue to challenge the status quo in the water solutions market. This acquisition will accelerate our plans to provide our solutions to the global market.”

Managing Director's summary

Lewis Utting Managing Director of Scidev Ltd has provided a statement.
Lewis Utting
Lewis Utting
Managing Director, Scidev Ltd

Download Announcement

View this announcement as well as our full profile on the company.

Comments

Share your thoughts about this announcement...

Similar articles
SciDev’s (ASX:SDV) soon to be subsidiary Haldon Industries awarded contract with Sydney’s Gateway Road Project
What has happened? SciDev (ASX:SDV) announced that its to be acquired subsidiary Haldon Industries has been awarded the...
4 months ago
SciDev (ASX:SDV) Cash Receipts Up +194% PCP in Latest Quarterly Activities Report
What has happened? Today SciDev (ASX:SDV) announced their quarterly activities report for the period ending 31 March 202...
5 months ago
SciDev (ASX:SDV) secures MaxiFlox® sales contract with Eramet subsidiary Société Le Nickel (SLN)
What has happened? SciDev (ASX:SDV) announced that it has signed a contract for supply of its MaxiFlox® chemistry with S...
6 months ago
Around the web
Scidev Ltd - SciDev’s (ASX:SDV) soon to be subsidiary Haldon Industries awarded contract with Sydney’s Gateway Road Project
Our summary of Scidev Ltd's recent announcement What has happened? SciDev (ASX:SDV) announced that i...
via smallcapinsider.com.au
Scidev Ltd - SciDev (ASX:SDV) announces cash receipts up 194% PCP in the latest quarterly activities report
Our summary of Scidev Ltd's recent announcement What has happened? Today SciDev (ASX:SDV) announced...
via smallcapinsider.com.au
Thinking of getting into ASX water stocks? Here’s what the experts think
Water is an absolute essential for life. Yet, only 1 per cent of the world’s water is clean and acce...
via stockhead.com.au
Powered by  
  • Company
    Scidev Ltd
  • Website
  • Sector
    Chemicals
  • Industry
    Commodity Chemicals
  • Code
    ASX:SDV
View Scidev Ltd's Profile

How do I invest?

Considering investing in Scidev Ltd?
Here's how to get started.
Low Cost Brokerage ASX Cheapest ASX Trading Platform
  1. 1

    Create account

    Open an account with an online broker of your choice. If you do not have an existing broker, consider Mawson Graham's A$9.50 flat fee platform.

    Sign up now »
  2. 2

    Search for ASX:SDV

    On your online investment platform search for the stock ticker code ASX:SDV to bring up the company's shares.

  3. 3

    Buy shares

    Place your order however you wish. If you need advice on buying or selling, you should seek the assistance of a full service financial adviser experienced in small cap equities.

Up