UECompression acquired by Xebec
By Mike Brezonick04 November 2021
Xebec Adsorption Inc., a Canadian supplier of clean energy solutions, announced it has closed the acquisition of all the outstanding shares of Colorado-based UECompression (UEC). Founded in 1983, UEC is a designer and builder of gas compressor and custom air solutions for energy, power generation and industrial applications.
The total consideration for the acquisition of the outstanding shares of UEC is of $8 million and is subject to certain holdbacks and adjustments. On a standalone basis, UEC is expected to have unaudited revenues of approximately $35 million for 2021.
Montreal-based Xebec said acquisition of UEC provides it with a cost-effective and timely pathway towards expanding production capacity five-fold for standardized renewable gas systems while supporting UEC’s legacy business as the operation continues its energy transition. With the introduction of containerized RNG and hydrogen systems and leveraging Xebec’s Cleantech Service Network to support UEC’s and Xebec’s installed equipment base, Xebec said it expects to see significant growth for this operation over the coming years.
The acquisition is also intended to increase the Cleantech Service Network coverage by six states (Montana, Wyoming, Colorado, North & South Dakota and Nebraska) to meet the increasing need for local service and support as the demand for standardized RNG and hydrogen systems accelerates.
Xebec expects that with limited changes to operations it can use UEC’s excess capacity to produce approximately 150 to 190 containerized BGX Biostream biogas upgrading and Hy.GEN hydrogen units per year in North America. The new capacity from UEC adds to recent capacity increases in Xebec’s Canadian manufacturing facility.
“UEC helps Xebec solidify its position as a leading renewable gas player by adding a 100,000 sq. ft. manufacturing facility in the U.S.,” said Kurt Sorschak, chairman, president and CEO, Xebec Adsorption Inc. “With this acquisition, we are responding to the accelerating energy transition and the associated interest in containerized RNG and hydrogen systems.
“Furthermore, UEC’s existing compression expertise in hydrogen will become increasingly relevant as the hydrogen economy develops. The acquisition will also help us in fully complying with current and evolving needs for local sourcing.”