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WOODCLIFFE LAKE, N.J., June 07, 2024 (GLOBE NEWSWIRE) — Hudson Technologies, Inc. (NASDAQ: HDSN) today announced it will acquire substantially all of the assets of USA United Suppliers of America, Inc. (d/b/a USA Refrigerants (“USA”) for $20.7 million, subject to customary post-closing adjustments and an earn-out payment of up to $2 million. USA is a national distributor of refrigerants and a leading purchaser of recovered refrigerants for over 25 years.
Brian F. Coleman, Hudson’s President and CEO, commented, “We have had a long-standing relationship with USA and have earned a strong reputation in the industry based on their refrigerant recovery expertise, strong sales organization and high levels of service and commitment. With the addition of the USA team, Hudson is creating a refrigerant acquisition group dedicated to acquiring all types of refrigerants, from CFCs to HFCs, and the latest generation of products.”
“USA’s proven success and longstanding relationships with ACCA members and other industry associations that purchase recovered refrigerants, as well as providing the purchasing team with access to Hudson’s customer base, are expected to significantly enhance our purchasing capabilities for all recovered refrigerants. Additionally, we expect USA to be able to leverage our existing customer base, which has generated approximately $20 million in annual revenue over the past three years. Additionally, the valuation of this strategic acquisition is consistent with our purchase price valuation target of six times EBITDA. We are excited about the potential this acquisition will enable us to expand our capabilities related to sourcing recovered and reclaimed refrigerants and accelerate sales of these higher margin refrigerants as current and future phase-outs of virgin refrigerants create a supply-demand imbalance in the market.”
Ted Broudy, U.S. President, commented, “Hudson is the perfect home for our operations. Hudson’s resources and expertise in field service, recovery and remanufacturing will ensure that our U.S. customers will continue to receive the excellent level of care and attention we have always provided. Combining our capabilities with those of Hudson also allows us to expand our expertise and service to a broader customer base. We look forward to joining Hudson and building a new team dedicated to the rapid growth of refrigerant acquisition and remanufacturing sales.”
About Hudson Technologies
Hudson Technologies, Inc. is a leading provider of innovative, sustainable refrigerant products and services to the HVAC and refrigeration industry. For nearly 30 years, we have demonstrated our commitment to our customers and the environment by becoming one of the first and largest refrigerant regenerators in the United States by investing millions of dollars in the plants and advanced separation technology required to recover a wide variety of refrigerants and restore them to Air-Conditioning, Heating and Refrigeration Association standards for reuse as Certified EMERALD Refrigerants™. Our products and services are primarily used in commercial air conditioning, industrial processing and refrigeration systems and include the sale of refrigerants and industrial gases, refrigerant management services consisting primarily of refrigerant regeneration, and RefrigerantSide® services performed at the customer’s site consisting of system purification to remove moisture, oils and other contaminants. Our SmartEnergy OPS® service is a web-based, real-time, continuous monitoring service applicable to a facility’s refrigeration and other energy systems. Our Chiller Chemistry® and Chill Smart® services are also predictive and diagnostic services. As part of our products and services, we also generate carbon offset projects.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
Any statements contained herein other than statements of historical fact are forward-looking statements. Such forward-looking statements involve a number of known and unknown risks, uncertainties and other factors that may cause the Company’s actual performance or achievements to differ materially from any future performance or achievements expressed or implied by such forward-looking statements, including, but not limited to, changes in laws and regulations affecting our industry, changes in demand and prices for refrigerants (including adverse market conditions adversely affecting demand and prices for refrigerants), our ability to procure refrigerants, regulatory and economic factors, seasonality, competition, litigation, the nature of arrangements with suppliers or customers available to us in the future, severe weather, possible technological obsolescence of existing products and services, possible reductions in the carrying value of long-lived assets, estimates of useful lives of assets, potential environmental liability, customer concentrations, ability to raise capital, ability to satisfy financial covenants under existing credit facilities, delays or interruptions in bringing products and services to market, timely availability of required permits and approvals from governmental agencies and third parties, and factors relating to doing business outside the United States, including changes in the laws, regulations and policies of the countries in which we intend to operate, and political, financial and economic conditions, including inflation, interest rates and currency exchange rates. the Company’s ability to successfully integrate assets acquired from third parties into its business, and other risks detailed in the Company’s 10-K for the year ended December 31, 2023 and other subsequent filings with the Securities and Exchange Commission. Words such as “believe,” “expect,” “anticipate,” “may,” “plan,” “should” and similar expressions identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made.
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