Ottawa’s Thermal Energy acquires U.S. firm in $2.25M deal

Thermal Energy

Ottawa-based Thermal Energy International (TSX-V:TMG) is heating up as it heads into the summer, announcing last week that it had bolstered its energy efficiency offerings with the acquisition of a U.S. company.

The local clean-tech firm will acquire Pennsylvania-based Boilerroom Equipment Inc. in a deal worth US$2.25 million. The Business Development Bank of Canada will provide Thermal Energy with a loan of the same amount to finance the acquisition. That price could rise by an additional US$350,000 if certain performance targets are met post-acquisition.

The deal adds indirect contact heat exchangers to Thermal Energy’s product portfolio and grows its distribution network to include larger commercial buildings and hot water boiler markets.

A release notes that Boilerroom’s solutions can be targeted at smaller industrial sites where Thermal Energy’s existing heat recovery systems are not cost-effective.

Thermal Energy CEO William Crossland said in a statement that the firm’s traditional direct contact heat offerings – now supplemented by BEI’s products – will allow the combined company to tackle both sides of the energy efficiency market.

“In the past, these two options have competed against each other, but now Thermal Energy has brought them together,” he said.

“The market for waste energy is extensive. With this acquisition, we are uniquely positioned to take advantage.”

The deal also comes with a software component, as Boilerroom has developed an automated proposal development platform.

Thermal Energy has had a solid fiscal 2018 to date, reporting nine-month revenues of $10.1 million in April, an increase of 20 per cent year-over-year. The firm’s share price has been largely stable since the start of the year, hovering around the nine cent mark on the TSX Venture Exchange.