Latest news with #ScottRook
Business Wire
6 days ago
- Business
- Business Wire
Chemtrade Logistics Income Fund to Acquire Polytec, a Provider of Turnkey Water Treatment Solutions
TORONTO--(BUSINESS WIRE)--Chemtrade Logistics Income Fund ('Chemtrade' or the 'Fund') (TSX: today announced that it has entered into an agreement to acquire Polytec, Inc. ('Polytec'), a southeastern United States-based provider of turnkey water treatment solutions, for US$150 million. The transaction represents a multiple of approximately 6.5x LTM Adjusted EBITDA. Chemtrade will finance the acquisition by drawing on its credit facility and anticipates it will close during the fourth quarter of 2025, subject to regulatory approvals and customary closing conditions. Following the transaction, Chemtrade expects to maintain ample liquidity and leverage. Polytec was founded over 30 years ago and provides turnkey water treatment solutions to a diverse customer base, primarily in the food-processing industry but also in the municipal market. The purchase of Polytec will add a unique solutions platform to Chemtrade's line of water treatment chemicals products. Chemtrade's North American-wide footprint and internal business systems will be used to leverage Polytec's business, with opportunities for cross-selling in the U.S. and Canada as well as more efficient management of overall business systems. 'This transaction will enable Chemtrade to expand its footprint in water solutions for the food-processing industry and municipal markets while also adding to our range of products,' said Scott Rook, President and CEO of Chemtrade. 'Polytec's founder Jack Harmon has built a company with the reputation of providing the best quality service and products. It is an excellent addition to Chemtrade's capabilities, broad spectrum of customers, logistics network, and technical expertise. Furthermore, the acquisition of Polytec is well-aligned with our strategy of growing the water business and represents an important step towards delivering on the growth pillars of Chemtrade's Vision 2030.' Commenting on the acquisition, Chemtrade's CFO, Rohit Bhardwaj, said 'Our successful leverage reduction strategy has provided Chemtrade with the financial flexibility to pursue compelling growth opportunities such as the acquisition of Polytec while continuing to maintain a conservative balance sheet and leverage within our target range without diluting our unitholders. Our capital deployment decisions remain grounded in financial discipline and are aligned with our goal of driving sustainable earnings growth and attractive total unitholder returns.' Polytec's founder Jack Harmon has committed to staying actively involved in the business in the months following the close of the sale to ensure a smooth transition for employees and customers. 'Polytec was founded over 30 years ago with the commitment to provide customers with high quality service, products, and technology. Over the years, Polytec invested in manufacturing facilities across four Southeastern states with the ability to support customer programs throughout the USA and internationally. The combination of Polytec and Chemtrade will reinforce our manufacturing and service capabilities as we aim to use our knowledge, service, and products to keep our customers compliant with water quality regulations,' said Jack Harmon, founder of Polytec. 'Chemtrade shares a similar vision, and I am confident that the combination of Polytec's unique water treatment solutions and Chemtrade's footprint will further accelerate our growth and the quality service we provide to our customers.' Advisors BMO Capital Markets served as financial advisor and Dorsey & Whitney LLP as legal advisor to Chemtrade. About Chemtrade Chemtrade is a Canadian company, headquartered in Toronto, Ontario, which operates a diversified business providing industrial chemicals and services to customers across North America and around the world. Chemtrade is one of North America's largest suppliers of sulphuric acid, spent acid processing services, inorganic coagulants for water treatment, sodium chlorate, sodium nitrite and sodium hydrosulphite. Chemtrade is also a leading producer of high purity sulphuric acid for the semiconductor industry in North America. Chemtrade is a leading regional supplier of sulphur, chlor-alkali products, and zinc oxide. Additionally, Chemtrade provides industrial services such as processing by-products and waste streams. Caution Regarding Forward-Looking Statements Certain statements contained in this news release constitute forward-looking statements within the meaning of certain securities laws, including the Securities Act (Ontario). Forward-looking statements can be generally identified by the use of words such as 'anticipate', 'continue', 'estimate', 'expect', 'expected', 'intend', 'may', 'will', 'project', 'plan', 'should', 'believe' and similar expressions. Specifically, forward-looking statements in this news release include statements with respect to certain future expectations about: Chemtrade's ability to obtain regulatory approvals, to close the acquisition transaction and the timing thereof; the source of funding for the transaction; Chemtrade's ability to maintain ample liquidity and leverage following the transaction; Chemtrade's ability to leverage Polytec's business across North America and via its internal business systems; its ability to cross sell in the US and Canada and to more efficiently manage overall business systems; Chemtrade's ability to expand its water solutions footprint for the food-processing industry and municipal markets while adding to its range of products; and the length of time Mr. Harmon will remain as a consultant. Forward-looking statements in this news release describe the expectations of the Fund and its subsidiaries as of the date hereof. These statements are based on assumptions and involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements for a variety of reasons, including without limitation the risks and uncertainties detailed under the 'RISK FACTORS' section of the Fund's latest Annual Information Form and the 'RISKS AND UNCERTAINTIES' section of the Fund's most recent Management's Discussion & Analysis. Although the Fund believes the expectations reflected in these forward-looking statements and the assumptions upon which they are based are reasonable, no assurance can be given that actual results will be consistent with such forward-looking statements, and they should not be unduly relied upon. Except as required by law, the Fund does not undertake to update or revise any forward-looking statements, whether as a result of new information, future events or for any other reason. The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement. Further information can be found in the disclosure documents filed by Chemtrade Logistics Income Fund with the securities regulatory authorities, available at
CTV News
27-06-2025
- CTV News
Pedestrian struck by car in ByWard Market, seriously injured
A woman was taken to hospital after being struck by a vehicle Thursday afternoon in the ByWard Market, according to the Ottawa Paramedic Service. June 26, 2025 (Scott Rook/ CTV News Ottawa) A woman was taken to hospital after being struck by a vehicle Thursday afternoon in the ByWard Market, according to the Ottawa Paramedic Service. Paramedics say they received a call at 7:15 p.m., reporting a collision involving a pedestrian at George Street and Sussex Drive. An adult woman sustained critical injuries. She was taken to hospital in critical condition, according to paramedics. Crash scene A woman was taken to hospital after being struck by a vehicle Thursday afternoon in the ByWard Market, according to the Ottawa Paramedic Service. June 26, 2025 (Scott Rook/ CTV News Ottawa) Crash scene A woman was taken to hospital after being struck by a vehicle Thursday afternoon in the ByWard Market, according to the Ottawa Paramedic Service. June 26, 2025 (Scott Rook/ CTV News Ottawa) More to come
CTV News
18-05-2025
- Climate
- CTV News
No injuries after wind blows off metal debris from ByWard Market building
An object believed to have fallen off a building under construction during a thunderstorm in Ottawa. (Scott Rook/CTV News Ottawa)
CTV News
16-05-2025
- General
- CTV News
5 travel tips for seeing the tulips in Ottawa this weekend
The tulips are in bloom at Commissioners Park in Ottawa ahead of the opening of the Canadian Tulip Festival. (Scott Rook/CTV News Ottawa)
Yahoo
14-05-2025
- Business
- Yahoo
Chemtrade Logistics Income Fund (CGIFF) Q1 2025 Earnings Call Highlights: Strong Revenue and ...
Revenue Growth: Increased by 11.5% year over year. EBITDA Growth: Up 9.3% year over year. SWC Segment Revenue: Grew by 11.9% excluding foreign exchange impacts. SWC Segment EBITDA: Increased by 12.5% year over year, excluding foreign exchange impacts. EC Segment Revenue and EBITDA: Relatively flat compared to the prior year period, excluding foreign exchange impacts. MECU Netbacks: Increased by approximately $165 per unit year over year. Distributable Cash: Generated $62.1 million in Q1, or $0.53 per unit. Growth Capital Investment: $7.2 million invested in Q1, with a full-year plan of $40 million to $60 million. Monthly Distribution Increase: Raised by 5% to $0.0575 per month in January 2025. Unit Purchases: 3.9 million units purchased in Q1 under NCIB. Net Debt Ratio: Approximately 2 times at the end of Q1. Available Liquidity: $780 million at the end of Q1. Adjusted EBITDA Guidance: Raised to the higher end of $430 million to $460 million for 2025. New Acquisition: Purchased Thatcher Group's aluminum sulfate water treatment chemicals businesses for $30 million. Warning! GuruFocus has detected 2 Warning Signs with CGIFF. Release Date: May 13, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Chemtrade Logistics Income Fund (CGIFF) reported a strong start to 2025 with a revenue increase of 11.5% year over year and EBITDA up 9.3%. The SWC segment was a significant driver of growth, with revenue and EBITDA increasing by 11.9% and 12.5% respectively, due to higher pricing and volumes. Chemtrade's capital allocation strategy is robust, with $62.1 million of distributable cash generated in Q1, supporting growth investments and unit holder returns. The company raised its monthly distribution by 5% in January 2025, reflecting sustained growth in earnings and cash flow. Chemtrade's Vision 2030 targets an average annual EBITDA growth of 5% to 10%, aiming for $550 million to $600 million by 2030, driven by organic growth and strategic acquisitions. Higher input costs in the SWC segment, particularly for water chemicals and sulfuric acid, posed challenges despite being managed effectively. The EC segment's revenue and EBITDA were relatively flat year over year, with lower chlorine volumes and revenues from Brazil impacting growth. Chemtrade faces uncertain macroeconomic conditions, making it challenging to forecast sales for the remainder of 2025. The company anticipates a collective EBITDA impact of roughly $5 million due to maintenance turnarounds at several sulfuric acid plants. Potential volatility in global trade and tariff structures could impact Chemtrade's operations, although the direct financial impact has been limited so far. Q: Can you characterize the current cycle position for Chemtrade's SWC and Electrochem segments, and is this a mid-cycle earnings period for Chemtrade? A: Scott Rook, President and CEO, explained that the SWC segment is considered mid-cycle, with future growth expected from organic opportunities like ultra-pure sulfuric acid. The EC segment varies by product; caustic soda is mid-cycle with potential upside, chlorine is near the top of the cycle, and hydrochloric acid is tied to fracking activity, making it harder to predict. Q: Regarding the Vision 2030 plan, is the organic growth primarily from the Casa Grande, Arizona project, and is M&A focused on water chemicals? A: Scott Rook clarified that the Vision 2030 plan does not include the Casa Grande project, which is on hold. Organic growth will come from existing projects like Cairo, Ohio, and other ultra-pure acid locations. M&A will focus on small to moderate acquisitions, primarily in water chemicals. Q: Why choose to spend $30 million on a five-times EBITDA acquisition instead of buying back stock at a lower multiple? A: Rohit Bhardwaj, CFO, stated that Chemtrade's capital allocation strategy includes growing the business, returning capital to unit holders, and maintaining balance sheet strength. The acquisition is strategic and synergistic, particularly in the water business, and they plan to continue with share buybacks as well. Q: Can you provide details on the water treatment chemical acquisition, its impact on guidance, and whether the deal has closed? A: Scott Rook confirmed the acquisition has not closed yet and is expected to close later in May. It is not factored into the upper end of the guidance. The acquisition involves buying a customer list without acquiring new facilities, allowing Chemtrade to service customers from existing operations. Q: What is the outlook for future tuck-in acquisitions, especially in the water treatment sector? A: Scott Rook mentioned that Chemtrade has a pipeline of potential projects and is cautiously evaluating them. While not targeting a specific number of acquisitions per year, they prioritize accretive deals and maintain a focus on share buybacks and organic growth. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
