Xebec Adsorption Inc., a global provider of clean energy solutions for renewable and low carbon gases, has closed the acquisition of all the outstanding shares of Nortekbelair Corp. (Nortec), a Tennessee-based company that specializes in compressed air drying and industrial systems.
Nortec’s principal, Mike Zarif, will remain with Nortec after the acquisition and continue his focus on R&D and product development within the company. With this acquisition, Xebec’s manufacturing footprint will expand with an 18,500 sq. foot facility in Maryville, Tenn., and will provide the company with personnel to establish a Center of Excellence for its dehydration products consisting of compressed air dryers, renewable natural gas dryers and hydrogen dryers.
Total consideration payable by Xebec is approximately $8.5 million CAD. The total consideration is subject to certain holdbacks, adjustments and time-based payments. Nortec had revenues of $4.5 million CAD for FY2020 and as with previous acquisitions, Xebec expects that Nortec’s growth and profitability could be improved with product, sourcing and back-office synergies.
“Nortec is a strategic acquisition for us because it will immediately increase our manufacturing capacity,” says Kurt Sorschak, chairman, president and CEO of Xebec Adsorption. “The Nortec team has done an excellent job in growing the business and creating a foundation that will help us bring new products to the U.S market and increase the production of existing ones. I am thrilled that Nortec is joining the Xebec family.”