Water and wastewater services provider Cascal N.V. (HOO), on Monday, said that it acquired 100% of the Servicomunal and Servilampa companies located in Santiago, Chile.
The London-based company said that the two new businesses operate perpetually held, regulated water and wastewater concessions and would be eventually combined with Cascal's existing operations to provide greater efficiencies.
Cascal expects the acquisitions to achieve revenues rising from about $6 million to about $8 million and EBITDA margins improving from about 40% to about 50%, over the initial 3 years.
Cascal funded the acquisitions by utilizing about $22 million from its existing corporate debt facility.
With a combined 23 thousand connections, the Servicomunal and Servilampa companies serve a population of approximately 100 thousand, mainly in the municipality of Colina.
Cascal expects that the newly acquired businesses to provide an opportunity for the company to combine operationally its Santiago-based businesses, with shared management, accounting systems, payroll, billing and repair crews.
HOO is currently trading at $12.34, down $0.02 or 0.16%.
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