Emefcy and RWL Water Merge to Become Fluence

Emefcy Group Limited has signed a letter of intent to merge with RWL Water. The merger aims to create a global provider of innovative, distributed water and wastewater treatment solutions.

It is anticipated that the proposed merger would substantially accelerate Emefcy’s deployment into China and other key markets, as well as deliver substantial sales synergies between Emefcy and RWL Water products and systems, resulting in continued strong revenue growth, improving gross margins and increased recurring revenue streams.

On a combined basis, the two groups would have achieved revenues of US$62 million (A$83 million) in 2016 and anticipate sales in excess of US$90 million (A$120 million) for calendar 2017, 71% of which have already been achieved or are in backlog. Each company made significant investments in business and product development in calendar year 2016 and incurred losses in the same year.

The proposed name of the new global group, subject to shareholders’ approval, would be Fluence Corporation Limited (“Fluence”). Fluence plans to provide a range of products and services for water treatment, wastewater treatment, desalination, waste-to-energy and water reuse and recovery.

The combined group would focus on key growth markets including municipal, commercial, industrial, mining, oil & gas, power, food and beverage sectors. Fluence’s wastewater treatment solution plans are centred around Emefcy’s proprietary Membrane Aerated Biofilm Reactor (“MABR”) technology and associated new technology developments.

It is anticipated that Fluence would substantially benefit from RWL Water’s recognition as one of the fastest growing water solutions companies in the world. RWL Water has designed and built more than 7,000 successful installations together with strong customer references in more than 70 countries worldwide.

The transaction is subject to agreement on definitive terms, execution of a purchase agreement, Emefcy shareholder approval and other customary conditions.

Creating a Leader in Distributed Water and Wastewater Treatment Solutions

“Subject to completion, we expect this merger to create a clear leader in the global distributed water and wastewater treatment industry, one of the fastest growing sectors of the water market globally,” stated Richard Irving, Executive Chairman.

“Emefcy has developed breakthrough technology to substantially reduce the cost of wastewater treatment, but has not yet fully developed its distribution and turn key plant implementation capability. RWL Water has grown rapidly into a world leader in the deployment of water treatment solutions, but now has a new injection of proprietary technologies.

This merger is intended to bring together the strengths of both companies, creating impressive synergies that promise to accelerate the already-rapid growth of each company.”

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Taxonomy

• Treatment
• Technology
• Business Strategy
• Water Management
• Water & Wastewater
• Mergers & Acquisition