HEO stock soars on takeover by Ember Infrastructure

Shares of H2O Innovation (H2O Innovation Stock Quote, Chart, News, Analysts, Financials TSX:HEO) are leading the TSX today on the heels of a takeover deal announced this morning.

HEO said it had entered into a definitive agreement to be acquired by funds managed by New York-based private equity firm Ember Infrastructure Management LP.

According to the details of the arrangement, H2O shareholders will receive $4.25 per share, a 68 per cent premium to the October 2 closing share price.

The transaction, which has been approved unanimously by the board, values HEO at $395-million.

“After extensive work we have concluded that this transaction is in the best interest of H2O Innovation and fair to our shareholders,” said chairperson Lisa Henthorne. “Following a comprehensive assessment and our extensive negotiations with the purchaser, we are pleased to have reached an agreement that provides immediate and fair value to our shareholders. In addition to the attractive premium offered to H2O Innovation’s shareholders, Ember has agreed to key commitments for H2O Innovation and its stakeholders. Ember appreciates the significance of H2O Innovation’s Quebec roots that will remain an important foundation for the corporation as it continues its growth, and has agreed to maintain H2O Innovation’s head office in the province of Quebec.”

Quebec City-based H2O Innovation designs and provides integrated water treatment solutions based on membrane filtration technology for municipal, industrial, energy and natural resources end-users, with operations in the Water Technologies and Services, Specialty Products and Operation and Maintenance Services segments.

At press time, shares of HEO were up 66.5 per cent to $4.18.

Editor’s note: This story is developing. Check back with Cantech Letter after market close for analyst reaction. You can view our extensive history of analyst coverage on the stock here.