Canadian advanced plasma processes and products developer PyroGenesis Canada Inc. (PyroGenesis) has announced that it has finalized its previously disclosed intention of the strategic acquisition of compatriot AirScience Technologies Inc. and its subsidiaries (AST) for an amended total cash consideration of approximately CA$4.4 million.
According to the agreement, which was concluded on August 12, 2021, 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 shall be adjusted downward. The Purchase Price shall be paid as follows:
AST, a Montreal-based company, offers technologies, equipment, and expertise in the area of biogas upgrading, as well as air pollution controls and is known for its line of landfill gas flares and thermal oxidizers which reduce greenhouse gas (GHG) emissions specifically from landfills.
However, AST also designs and builds: (i) gas upgrading systems to convert biogas to renewable natural gas (RNG); (ii) pyrolysis-gas purification; and (iii) 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.
PyroGenesis will operate AST as a wholly-owned subsidiary and retain the current management and staff comprising of approximately 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. 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 that are currently using their technology. 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, said Peter Pascali, CEO and Chair of PyroGenesis.
