Thermal Energy International Inc., a global provider of industrial and institutional energy efficiency solutions, announced that it has acquired all of the outstanding shares of privately held Boilerroom Equipment Inc. based just outside of Pittsburgh, Pa.
This acquisition is part of the Company’s strategy to develop a broad portfolio of thermal energy efficiency solutions targeted at the industrial, institutional and commercial markets and become a unique one-stop-shop for all of its clients’ thermal energy efficiency and heat recovery needs, whether they need heat recovery for thermal, electrical, drying, cooling, or other process needs.
The purchase price is USD 2.25 million, plus earn-out consideration of up to USD 350 thousand if certain growth and performance targets are achieved over the next three years. Thermal Energy has received a term loan in the principal amount of USD 2.25 million from BDC Capital Inc., a wholly owned subsidiary of the Business Development Bank of Canada to fund the transaction.
Based in Export, Pa., BEI engineers and manufactures the HEATSPONGE® brand of bestin-class indirect contact heat recovery units for use in both commercial and industrial steam and hot water applications.
The acquisition of BEI is expected to provide Thermal Energy with the following immediate benefits:
- Expanded complementary product offering to include indirect contact heat exchangers
- Increased distribution network, providing access for all Thermal Energy’s current offerings to over 40 independent reps covering the U.S. as well as an established and direct boiler OEM sales channel
- Expansion into the much larger commercial buildings and hot water boilers markets
- Proprietary, scalable automated proposal development software, “BRUCE”
- Sales, marketing, engineering, and project management expertise and efficiencies with scalable operating platform
- Vertical integration of an ASME code fabrication facility in the United States allowing for the potential future GEMTM finishing and stocking and the ability to build FLU-ACE® towers
“The addition of BEI supports our growth strategy by expanding our team, distribution and product offering,” said William Crossland, CEO of Thermal Energy.
“This makes Thermal Energy the only known global supplier of direct and indirect contact heat recovery systems. In the past, these two options have competed against each other, but now Thermal Energy has brought them together. As the global market moves more towards sustainability, the effective use of waste heat becomes paramount. Whether waste heat is used directly at the client site, or used to produce cooling or electricity at neighbouring sites, the market for waste energy is extensive. With this acquisition, we are uniquely positioned to take advantage of this existing trend.
“In this way, this transaction brings together two very complementary organizations and is expected to add shareholder value through increased sales and earnings. We also expect to benefit from BEI’s strong United States distribution network and established boiler OEM relationships. Similarly, there is potential for further growth using Thermal Energy’s global footprint to accelerate the deployment of BEI’s technologies. We are already very familiar with, and impressed by, BEI’s products, having integrated them into several of our projects over the years.”
“I would also like to take this opportunity to welcome Vince Sands P.E., co-founder and current President of BEI, and his team to our company,” added Mr. Crossland.
Mr. Sands commented: “We are extremely pleased to be a part of Thermal Energy International. While I am very proud of the company we founded and built, we recognized that for BEI to achieve everything it is capable of would require partnering with a larger organization that can provide the resources BEI needs.”