Cemtrex to acquire bioenergy technology company
As the price of purchasing and using freshwater increases, the global water and wastewater treatment equipment market grows. TechNavio's analysts forecast growth at a compound annual growth rate (CAGR) of 10.53 percent from 2012 to 2016. Additionally Global Water Markets, predicts the market for the equipment to rise by 27 percent to $255 billion over the next five years, with sludge management and energy recovery among the growing trends in the industry. Cemtrex Inc., a technology company that provides solutions to meet today’s environmental challenges, recognized an opportunity to contribute to the growth. The company recently entered into a letter of intent to purchase all the assets of a foreign wastewater treatment and bioenergy plant technology company with approximately $14 million in annual sales for 2013.
Cemtrex’s Chairman and CEO, Saagar Govil, sees the potential in the market going forward as infrastructure improvements are made both in the U.S. and overseas. “We are really interested in the technology and being able to take that outside our intra-markets where we see growing demands for this type of technology and the applications,” Govil said.
The acquisition will allow Cemtrex to expand its environmental capabilities from presently air pollution control solutions and environmental monitoring to include technology for wastewater treatment and the generation of bioenergy from organic waste.
Govil says the growing opportunity expands beyond the U.S. to Asia, Sub-Saharan Africa and parts of South America. “We are looking at it as a global perspective, as far as expanding our reach in this market,” Govil said. “There is a lot of opportunity just with the bioenergy side, and generating electricity as an expansion to wastewater treatment plants as well.”
The opportunity comes not only from the increase in the price of purchasing and using freshwater, but also from an increased water demand. As the gap between water demand and supply remains, growth in the market, with acquisitions like Cemtrex’s, and infrastructure improvements are anticipated.
The company expects to use its existing capital to complete the transaction no later than Aug. 31. The company will release additional information in the coming weeks as the acquisition is finalized.