Sign up Australia
Proactive Investors - Run By Investors For Investors

De.mem to enter lucrative Australian water treatment market via acquisition

The acquisition will strengthen the Singapore company’s position in the Asia Pacific region.
Water treatment plant
The consideration for the transaction includes $1.5 million in cash

De Mem Ltd (ASX:DEM) is expanding into Australia by acquiring Akwa-Worx, a Queensland based provider of water and waste water treatment systems.

The acquisition will strengthen the Singapore-based water treatment company De.mem’s position in the Asia Pacific region and provides an opportunity for growth in the mining and industrial sectors.

Akwa-Worx currently supplies products for de-centralised industrial and municipal water and waste water treatment in Australia.

The company’s product lines include Ultra Filtration (UF) Reverse Osmosis (RO) based systems, Membrane Bioreactors (MBRs), bioreactors and chemical dosing systems.

The systems are typically delivered as packaged or modular solutions for de-centralised applications.

Akwa-Worx’s clients include a number of leading corporations from the Australian mining sector and its subsidiary’s ongoing long-term maintenance contracts provide a stable recurring revenue component.

The company’s revenues for the 12 months ended 30 June 2017 were circa $7 million including more than $2 million derived from long-term operations and maintenance contracts.

Akwa-Worx’s normalised EBITDA for FY17 was circa $800,000.

The acquisition will result in the combination of De.mem’s innovative membrane technologies with Akwa-Worx’s established position and proven product offering in Australia.

The consideration for the transaction is $1.5 million in cash and $460,000 in De-mem shares, plus milestone shares and cash on crossing pre-set revenue targets for the next two years.

View full . profile View Profile

Proactive Investors Australia Timeline

Related Articles

mobile phone
June 19 2018
The marketing group has already said profits for the full-year will be ahead of expectations despite only being halfway through its current financial year
Marketing and public relations
April 04 2018
"Our Beyond, MBooth and Publitek agencies have been stand-out performers, whilst we have achieved solid performances pretty much across the portfolio"
July 11 2018
From an almost standing start in 2016, the group is scheduled to run Bricklive banded shows at 60 venues this year

No investment advice

The information on this Site is of a general nature only. It does not take your specific needs or circumstances into consideration, so you should look at your own financial position, objectives and requirements and seek financial advice before making any financial decisions. You acknowledge and understand that neither the Company, its related bodies corporate, the information providers or their affiliates will advise you personally about the nature, potential value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter. You should read our FSG and any other relevant disclosure documents and if necessary seek persona advice prior to making any investment decision.

You understand and agree that no Content (as defined below) published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person.

You understand that in certain circumstances the Company, its related bodies corporate, the information providers or their affiliates may have received, or be entitled to receive, financial or other consideration in connection with promoting, and providing information about, certain entities on the Site and in communications otherwise provided to you.

You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate. From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Before you act on any general advice we provide, please consider whether it is appropriate for your personal circumstances.

© Proactive Investors 2018

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use