![]() ![]() We are excited to explore this new frontier with Arq’s leadership, which will allow for a transition to better position us to pursue higher margin markets. ![]() Arq has developed and patented new and innovative technologies with the potential to revolutionize the performance of carbon-based materials, which also provide a unique solution to reduce the need for the extraction of virgin hydrocarbons. “We are thrilled to join forces with Arq and pursue the exciting opportunity the merger presents to grow our businesses and to expand and enhance our collective operations and product portfolio. “The announcement of our proposed merger with Arq Limited represents the culmination of our strategic review process and months of diligent work to identify, evaluate and pursue opportunities to increase value for our shareholders,” said Greg Marken, Chief Executive Officer, President and Treasurer of ADES. Attractive financial profile: Combined company projected to generate annual revenue of $196 million and annual EBITDA of $61 million by 2026, with potential to expand growth through additional financed capital raises.The merger also provides for the optimization of the Red River plant to produce additional GAC made from Arq’s feedstock, thereby allowing entrance into growing and diverse markets, as well as improving the plant’s economics. Profitability enhancement: The combination of ADES and Arq provides entry into broader, higher performance and higher value AC markets by leveraging ADES’ existing organizational infrastructure, large scale manufacturing capabilities, established distribution network, world-class research, technical support, market-leading sales channels and customer base, while integrating Arq’s unique patent-protected and environmentally sustainable feedstock.Further, with Arq’s feedstock, the combined company’s vertically integrated supply chain will enable highly efficient production and distribution of an expanded portfolio of both GAC and powdered activated carbon (“PAC”) products. In addition, the utilization of waste-derived feedstock results in lower manufacturing emissions and promotes the reclamation of property for future use. Sustainable competitive advantage: The merger provides secured access to unique, waste-derived feedstock, which can be used to produce higher performance and environmentally beneficial AC products that, when combined with a vertically integrated supply chain, provides a distinct competitive advantage in the North American AC market.The combined company will seek to leverage Arq’s existing strategic partnerships with Peabody, Vitol, Hafnia and Mitsubishi. Adjacent market growth opportunities: Arq’s technology and unique feedstock provide significant growth opportunities into high-growth granular activated carbon (“GAC”) markets as well as large, adjacent markets including, but not limited to, additives to be utilized within the Carbon Black, Asphalt and Marine Fuel markets.Merger Rationale and Transaction Highlights Access to Arq’s unique carbon feedstock will allow ADES to produce higher value activated carbon (“AC”) at the company’s Red River plant. ![]() The merger creates a North American based, integrated environmental technology company with access to diverse growth markets and a competitively advantaged position supported by patent-protected intellectual property (“IP”) and products. Concurrent with the merger, there will be a committed equity placement of $20.0 million from current Arq investors and members of Arq management.Īrq developed and owns a novel manufacturing process for producing patent-protected carbon products from remediating coal waste sites. ADES shareholders may elect to receive up to an aggregate of $10.0 million of cash proceeds in the merger (at a price of $0.52 per share) and will retain at least 47.4% of the outstanding shares of the combined company and could increase up to 49.5% based upon 100% equity elections by ADES Investors. (NASDAQ: ADES) (the “Company” or “ADES”), a leader in emissions control solutions for coal-fired power generation, industrial and municipal water purification markets, today announced that it has entered into a definitive merger agreement with Arq Limited (“Arq”), pursuant to which Arq and ADES will combine their respective businesses. GREENWOOD VILLAGE, Colorado, August 19, 2022 – GlobeNewswire – Advanced Emissions Solutions, Inc. Merger expected to provide access to growth opportunities in adjacent markets, create sustainable competitive advantages, and enhance the profitability of ADES’ product portfolioĬombined entity projected to generate $196 million of annual Revenue and $61 million in annual EBITDA by 2026 ![]()
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