Join our daily newsletter At The Bell to receive exclusive market insights
- SciDev (SDV) is set to acquire Highland Fluid Technology for $8.55 million (US$6 million) after signing a binding heads of agreement
- Highland is a US company which specialises in bespoke chemistry and services for fluid recycling and water reuse
- The acquisition will give SciDev access to the U.S. oil and gas sector where Highland has a number of existing clients
- In addition, Highland will be able to tap into SciDev’s existing supply chain
- Shares in SciDev are trading 8 per cent higher, worth 24 cents apiece
SciDev (SDV) is set to acquire Highland Fluid Technology for $8.55 million (US$6 million), after signing a binding heads of agreement.
Highland is a US company which specialises in bespoke chemistry and services for fluid recycling and water reuse.
In the 2019 calendar year, Highland reported revenue of approximately $11.1 million (US$7.8 million).
SciDev works in the development and application of chemistry and process control for solids-liquid separation and has previous delivered chemicals to Highland.
SciDev Managing Director and CEO Lewis Utting said the acquisition will help the company build its customer base in the U.S.
“Highland offered an attractive investment opportunity for SciDev given the calibre of their people, strong customer focus, innovative technology and the company’s existing footprint in the attractive US oil & gas sector.”
In addition, Highland will be able to tap into SciDev’s supply chain.
“The acquisition provides Highland with access to SciDev’s supply chain through our strategic supply partner, the Nuoer Group, delivering margin upside on the existing Highland business,” said Utting.
“This access now provides Highland with the surety of quality chemical supply required by the largest oilfield service providers, allowing SciDev and Highland to realise our growth potential in this market,” he continued.
Shares in SciDev are trading 8 per cent higher, worth 24 cents apiece at 12:30 pm AEDT.
