Hudson Technologies, Inc. has just announced its acquisition of USA United Suppliers of America, Inc. d/b/a USA Refrigerants for $20.7 million, with the possibility of an additional $2 million in earnout payments. This acquisition is expected to significantly enhance Hudson's purchasing abilities of all recovered refrigerants.
USA Refrigerants has generated average revenues of approximately $20 million per year over the last three years. The acquisition is in line with Hudson's purchase price valuation target of 6x EBITDA.
Hudson Technologies, Inc. is a leading provider of refrigerant products and services to the heating, ventilation, air conditioning, and refrigeration industry. They have demonstrated their commitment to customers and the environment by becoming one of the first and largest refrigerant reclaimers in the United States.
The company's smartenergy ops® service is a web-based real-time continuous monitoring service applicable to a facility’s refrigeration systems and other energy systems. Additionally, the company's chiller chemistry® and chill smart® services are predictive and diagnostic service offerings.
This acquisition is expected to help scale Hudson's capabilities related to sourcing recovered and reclaimed refrigerants, enabling them to drive increased sales of these higher margin refrigerants as current and future phase downs of virgin refrigerants create supply/demand imbalances in the marketplace. As a result of these announcements, the company's shares have moved 3.7% on the market, and are now trading at a price of $9.43. For the full picture, make sure to review Hudson Technologies's 8-K report.
