Calgon Carbon (NYSE:CCC) acquired Hyde Marine, Inc., a manufacturer of systems that utilize ultraviolet light technology to treat marine ballast water. Terms of the transaction were not disclosed.
Hyde Marine’s Hyde Guardian™ system, which employs stacked disk and ultraviolet light technology to filter and disinfect ballast water, offers cost, safety, and technological advantages. Guardian has received Type Approval from Lloyd’s Register on behalf of the U.K. Maritime and Coast Guard Agency. Type Approval confirms compliance with the International Convention for the Control and Management of Ships’ Ballast Water and Sediments [BWMC].
BWMC, which was adopted by the International Maritime Organization in 2004, addresses the transportation of potentially harmful organisms through ballast water. The regulation is scheduled to be phased in globally over a ten-year period beginning in 2010, and industry sources estimate that it will require treatment of ballast water from more than 40,000 vessels by 2020.
At the start of the year, Calgon Carbon acquired Zwicky Denmark and Sweden, a long-term distributor of Calgon's activated carbon products in Europe with 2008 sales of $4.2 million.
This latest acquisition adds to the businesses that Calgon Carbon currently operates in through its the three Business segments - Activated Carbon and Service, Equipment, and Consumer. The company has grown its revenues since 2003 at a compounded average growth rate of close to 10%. As overall wealth and standards of living improve globally, the segments that the company operates in are likely to see better growth rates. The acquisition only adds to the likely organic growth. The company seems to be a good bet for long-term portfolios. Near-term upsides may be capped by valuations at 20xFY10E earnings.
Calgon Carbon provides services, products, and solutions for purifying water and air in the United States and internationally.
The Activated Carbon and Service segment manufactures granular activated carbon for use in applications to remove organic compounds from water, air, and other liquids and gases. It also offers leasing, monitoring, and maintenance of carbon adsorption equipment. In addition, this segment provides carbon reactivation, handling, and transportation.
The Equipment segment offers systems to purify air and water. Its carbon equipment is used for volatile organic compound emissions control, air stripper off-gases, and landfill gas emissions, as well as for process purification, wastewater treatment, groundwater remediation, and de-chlorination. This segment employs proprietary ISEP (Ionic Separator) continuous ion exchange units for the purification of products in the food, pharmaceutical, and biotechnology industries. Its ISEP units are also used to remove nitrate and perchlorate contaminants from drinking water. In addition, this segment offers UV equipment to disinfect drinking and waste water, as well, and produces odor control equipment to control odors at municipal wastewater treatment facilities and pumping stations. As of January 31, 2009, the company had a sales backlog of $22.3 million.
The Consumer segment manufactures and sells carbon cloth for the medical and specialty markets, as well as offers PreZerve storage products to protect and preserve jewelry, and AllGone to adsorb odors and impurities from the air. Calgon Carbon Corporation serves potable water, industrial process, food, environmental water and air, and specialty markets.
Author's Disclosure: No exposures