LONDON, ON, Jan. 14, 2004 -- Trojan Technologies Inc. announced it has completed the previously announced acquisition of a 51% interest in US Peroxide, LLC of Laguna Niguel, California, effective January 5, 2004.
The purchase of US Peroxide expands the range of integrated solutions Trojan provides for water and wastewater treatment and supports Trojan's strategy for revenue growth by building on new product solutions in existing markets.
The purchase price of the initial 51% interest is estimated at US$5.2 million, paid in cash, and remains subject to adjustment on completion of US Peroxide's audited financial statements for the year ending December 31, 2003. In 2007 and 2009, Trojan will purchase a further 34% and the remaining 15% interest, respectively, provided certain performance targets are achieved.
The valuation of these subsequent purchases will be based on US Peroxide's performance. The net impact on Trojan's financial results is expected to be neutral to earnings in 2004 and accretive to earnings in 2005.
US Peroxide (www.H2O2.com), founded in 1997 in Laguna Niguel, California, is an environmental technology and service provider, delivering cost-saving environmental solutions to both the municipal and industrial markets, and is the single largest North American direct supplier of hydrogen peroxide (H(2)O(2)) for environmental service applications.
In addition to supplying hydrogen peroxide, the company sells equipment and services related to the use and monitoring of hydrogen peroxide, primarily at wastewater treatment plants. The company employs approximately 25 staff and is expected to generate annual revenue of approximately US$8.5 million in 2003.
Trojan Technologies (www.trojanuv.com) designs, manufactures and sells UV systems for municipal wastewater and drinking water facilities, as well as for the industrial, commercial and residential markets. The company also provides UV treatment for the removal of certain chemicals from water.
With over 3,500 municipal facilities in more than 25 countries using its technology, Trojan has the largest installed base of UV systems in the world. Headquartered in London, Ontario, Canada, the company also has offices in the U.K., Germany, Netherlands, Norway, Spain, and the U.S. Its shares are listed on The Toronto Stock Exchange under the trading symbol TUV.
