Search Share Prices
Water Intelligence aims to make a splash with California franchise
Water Intelligence has acquired its franchise in California for $252,000 after raising £4.2m in a placing to fund several acquisitions, the company said on Thursday.
The leak detection and remediation services company has acquired the American Lead Detection franchise in Bakersfield after purchasing another such franchise in Louisville, Kentucky, earlier this month.
Patrick DeSouza, executive chairman of Water Intelligence, said: "American Leak Detection can now make a difference in an important region for the US economy. Moreover, given the reality of waste as a by-product of agribusiness, and California's leadership on environmental matters, this area will also be an ideal location to develop our newly announced renewables line."
California often suffers drought conditions with water loss being a particularly sensitive issue for agricultural businesses in the state.
The previous franchise owner made approximately $180,000 in sales during 2017 and Water Intelligence plans for further expansion rapidly, citing "the size of the opportunity".
"This territory was under-exploited by our American Leak Detection franchise operation relative to its geographic size and demand for solutions to water loss. With a critical mass of corporate-operated resources and the added leadership of one of our strongest franchise owners, we see a lot of upside starting immediately," said DeSouza.
The AIM-traded company will utilise a similarly strategy at the Bakersfield franchise to the one it is implementing in Louisville, which is a much larger operation.
As of 1419 GMT, Water Intelligence's shares were unchanged at 210.00p.