H2O Innovation set to move into maple syrup market in the U.S.

H2O Innovation Inc. is looking to close a sweet deal in acquiring Leader Evaporator Co., Inc., a company that has been selling maple farming equipment and products to maple syrup producers located mainly in the United States.
H2O Innovation – through its maple business line – has been manufacturing and selling equipment for the manufacture of maple syrup to producers located in both Canada and the U.S. The corporation develops and manufactures solutions and products built around its membrane filtration background, in its facility of 81,390 sq. ft. located in Ham-Nord, Que.
“This transaction is a perfect fit for H2O Innovation’s maple business line as we already foresee multiple synergies. We envision partnering with Leader’s customers to continue building a business of significant value, one that honors the legacy of Leader, and thus, becoming one of the most important players in the maple industry. The transaction will also contribute to solidifying customer retention and to creating additional recurring revenues. The acquisition is expected to increase revenues coming from maple equipment and products by 60% to 70% and to expand our manufacturing capabilities to answer the growing demand of the maple industry,” said Frédéric Dugré, president and Chief Executive Officer of H2O Innovation.
This transaction should allow H2O Innovation to increase its market share in the maple industry, primarily in the United States of America, to solidify its position as manufacturer of maple equipment and products and to expand its manufacturing capabilities with an additional facility of 103,780 sq. ft. located in the Town of Swanton, VT.
In addition, H2O Innovation will add 53 distributors and dealers to its current distribution network of nearly 50 distributors. Through this transaction, H2O Innovation will inherit more than 50 employees working at the Swanton facility.
The transaction is expected to close before July 1, and is subject to customary closing conditions for this kind of transaction. The transaction will be financed using the Corporation’s available cash and/or existing credit facilities.
“We are very excited about this transaction because it capitalizes on Leader’s historical legacy for quality and innovation, while positioning it to be a truly international brand, giving the resources and capabilities to, within a few years, become the maple industry’s market leader. The synergies between the Leader and H2O Innovation product lines and the harmony of our company cultures makes this a perfect fit. And with the maple farming sector poised for a major growth cycle, this transaction sets Leader and H2O Innovation up for a very strong decade of growth,” stated Jeff Smith, president of Leader.