Profire Energy subsidiary to acquire assets of Millstream Energy Products
Profire Energy announced that on June 12, its wholly-owned subsidiary, Profire Combustion, entered into a definitive agreement to acquire substantially all of the assets of Millstream Energy Products. The Agreement contains certain customary representations, warranties and covenants. The transaction closed on June 18. MEP's full line of products will be available for sale by Profire's existing sales team immediately after closing of the transaction. The acquisition is expected to add between $1M to and $2M to the Company's annual revenues. The Company has agreed to pay a total purchase price of $2.5M or C$3.3M, for MEP's product line, inventory, accounts receivable and payable, debt and other intangibles, including its patents and goodwill. MEP will also receive a 4.5% royalty on proprietary MEP product revenue generated during the next five years. The purchase price is subject to an adjustment based on working capital at closing.