Greenlane to acquire Airdep, Italian provider of biogas desulfurization products

December 19, 2021 |

In Canada, Greenlane Renewables Inc. entered into a definitive agreement to acquire Airdep S.R.L., a provider of biogas desulfurization and air deodorization products based in Vicenza, Italy. The acquisition of Airdep will bring in-house an effective and proven technology to remove hydrogen sulfide (H2S) from biogas for integration with Greenlane’s portfolio of biogas upgrading systems that produce low-carbon and carbon-negative renewable natural gas.

It will also add an attractive line of products for sales into existing and new biogas projects globally, independent of the full biogas upgrading system. Over the last ten years since its founding, Airdep has deployed over 100 H2S treatment systems that use a proprietary liquid reagent media for removal of H2S in biogas. The liquid media is regenerated and recirculated within the process to minimize operating costs. The Airdep system offers lower capital and operating costs than competing methods, and is especially compelling for use in higher flow, higher H2S concentration applications. Airdep has a history of generating profits with expected 2021 revenue of approximately $5M (unaudited). In addition to H2S treatment products, sales of which have generated the bulk of Airdep’s revenue, Airdep also offers an extensive line of air deodorization products.

All amounts are in Canadian dollars unless otherwise stated.

Consideration for the acquisition of Airdep S.R.L. will be comprised of $8M (€5.5M) in cash payable on closing and $1.4M (€1.0M) in Greenlane shares issuable in equal tranches over the following 4 quarters, with additional contingent earn-out consideration of up to $3.6M (€2.5M). The earn-out will be calculated, and if thresholds are met, become payable in early 2025 based on future company financial performance and will be payable in cash, or a combination of cash and Greenlane shares, at Greenlane’s option. The total maximum consideration for the acquisition is $13M (€9M).

Closing of the acquisition is anticipated in January, 2022 and is subject to customary closing conditions, including TSX approval in respect of the issuance of share consideration.

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Category: Fuels

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