Hydro International to acquire Hydro-Logic

Hydro International has signed conditional agreements to purchase Hydro-Logic Limited and Hydro-Logic Services, known as Hydro-Logic.

Set-up by Rod Hawnt in 1985, Hydro-Logic Limited supplies instrumentation and information systems essential for water environment monitoring applications such as data logging and telemetry.

Hydro-Logic services use its devices to gather and analyse real-time information.

This data is used to maximise hydraulic and network design, increase water system efficiencies, reduce the chances of flood and pollution, as well as supporting planning decisions, reported Wateronline.com.

Hydro-Logic services also offer advice on hydrological and water resource management.

Hydro-Logic Limited will be acquired for a nominal amount, in addition to assumption of £429,000 debt, as well as 11.5% additional deferred consideration of sales, including the intellectual property in the starting three years. This extra consideration is limited at £2m.

Hydro-Logic Services will be purchased at an initial sum of £916,000, in addition to an extra deferred consideration based on the profitability of the entity in the first three years. This extra consideration is limited at £2m.

The two businesses have generated revenues amounting £3.6m for the year ending 31 May 2015.

Expected to be complete on 8 March, the acquisition will be funded from existing cash, as well as through loans.

Hydro International chief executive Michael Jennings was quoted by Water Online as saying: "This acquisition is an important strategic step in extending our core capabilities.

"Hydro-Logic’s technology, expertise and experience will broaden and deepen many aspects of our business.

"The new products and services that we can offer will give unprecedented insight into the design, installation and operation of water management products, saving money for customers, reducing risk and helping them to protect the environment."

The managing directors of Hydro-Logic Services, Rod Hawnt and Colin Fenn, will continue to remain with the business even after its acquisition.