Thermal Energy buying U.K.'s Gardner Energy

Ottawa-based Thermal Energy International (TSX: TMG), which makes air pollution control, renewable energy, and waste heat recovery products, announced today that it would acquire Bristol, England's Gardner Energy Management, a manufacturer of steam traps, for $5.4 million.

Under the agreement, Thermal Energy said it also plans to pay up to $2.6 million in cash and shares over a three year period based on the future performance of Gardner Energy.

"Since integrating the GEM product line into our offerings in North America and China starting in 2006, Thermal Energy has been very impressed with the product performance and our customers' strong positive response," said Tim Angus, president and CEO of Thermal Energy.

"Our familiarity with GEM products and business and the strong synergies between GEM and Thermal Energy made this acquisition a natural progression."

Thermal Energy said Tim Gardner, founder and managing director of Gardner Energy, would remain with the company for at least one year to assist Thermal Energy's management team in overseeing the integration of Gardner Energy.

Gardner said, "We are confident that Thermal Energy is the company that will take the GEM business line to the next level on a global basis and look forward to completing this transaction and achieving the synergies we both know exist."

Thermal Energy said it expects the transaction to close on or before July 4, subject to financing and regulatory approvals. The company plans to raise the capital for the initial purchase price through a private placement of its common shares.

Cleantech developments making news in the past 24 hours

• Ag tech, fuel cells thrive in busy week for deals
• India gets first car-free city
• China embraces cleantech, dodges downturn
• Econcern partners on €863M Chinese wind farm deal
• Behind the scenes at Cleantech Forum Shanghai
• Infinite Power raises $13M to ramp thin-film batteries

View the last week of cleantech developments here | Subscribe to full feed