PyroGenesis Canada Inc has finalized its strategic acquisition of AirScience Technologies Inc (AST) and its subsidiaries for an amended total cash purchase price of about $4.4 million.
In a statement, PyroGenesis said the purchase price will be paid upon various contract and business-related milestones. Should any of the milestones not be reached within the next three years, the purchase price will be adjusted downward.
AST, a Montreal-based company, offers technologies, equipment, and expertise in the area of biogas upgrading, as well as air pollution controls.
AST designs and builds gas upgrading systems to convert biogas to renewable natural gas (RNG). It is also focused on pyrolysis-gas purification, biogas & landfill-gas flares and thermal oxidizers, and purification of coke-oven gas (COG) (a by-product in the primary steel industry arising from the conversion of coal into coke) into high purity hydrogen, which is in high demand across the industry.
AST is also known for its line of landfill gas flares which reduce greenhouse gas (GHG) emissions specifically from landfills.
PyroGenesis said it will operate AST as a wholly owned subsidiary and retain the current management and staff, comprising about 20 employees. AST has current operations across North America, Italy, and India. The acquisition is expected to positively impact PyroGenesis’ earnings per share in 2021.
“We are extremely excited about today’s announcement as it essentially springboards PyroGenesis into the RNG market where we believe there is a significant unmet need for RNG-providers, particularly in North America,” said PyroGenesis CEO Peter Pascali in a statement.
“This acquisition effectively provides PyroGenesis with a 15+ year advantage compared to building these operations from scratch. In addition, we will now have a presence in Italy, and India (where AST has already developed relationships with several multi-billion-dollar companies who are currently using their technology)."
Pascali added: "Moreover, this acquisition provides potential synergies with our land-based waste destruction offerings which, if successful, will significantly increase their value to the market. AST’s technology complements PyroGenesis’ existing offerings and further strengthens PyroGenesis’ position as an emerging leader in GHG solutions for sustainable long-term growth.”
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