- Xebec Adsorption has acquired the outstanding shares of custom air and gas compressor solutions provider UECompression for c. $9.9 million.
- The UEC acquisition makes strategic sense as it should allow Xebec to better capitalize on secular growth trends.
- With the transaction multiple also undemanding at c. 0.2x revenue, an accretive outcome looks likely.
- Shares currently trade reasonably relative to the underlying growth potential, keeping me bullish.
For further details see:
Xebec Adsorption: Adding Capacity With The Strategic Acquisition Of UECompression