Australian technology company Calix Limited (ASX: CXL) has entered into a binding agreement to acquire 100% of US-based Inland Environmental Resources (IER).
The multi-award winning company has also successfully completed a placement of $12 million to cover both the cost of the acquisition and additional capital for accelerating US market expansion.
Under the agreement Calix will acquire IER’s Magnesium Hydroxide Liquid (MHL) specialist focused on waste water in food processing treatment, for US$6.5 million.
Calix Managing Director Phil Hodgson said the acquisition of IER is consistent with the company’s focus of expanding its markets utilising its patented Magnesium Hydroxide value chain into water and waste water, infrastructure, aquaculture, freshwater lake remediation, and agriculture.
IER represents a great opportunity to leverage our technology into a great local US company to accelerate growth. We look forward to welcoming the IER team to Calix and working with them to build a great business in the US,” Mr Hodgson said.
IER purchases locally sourced magnesium oxide and “hydrates” it to magnesium hydroxide. IER has four manufacturing facilities in Washington State and Iowa, selling well over 20,000 tonnes per year to over 80 customers.
It has two active patents in MHL chemistry, which combined with Calix’s multiple patent portfolio, brings considerable IP power.
Doug Kelly, IER President, said his company was excited to be joining the Calix team to utilise the company’s unique MHL product stability and reactivity characteristics to drive further growth into our primary North American markets and expand the applications of these high quality, environmentally friendly technologies.
