Fuel Tech, Inc. (NASDAQ: FTEK) announced that it will acquire Advanced Combustion Technology, Inc. (ACT), a provider of nitrogen oxide (NOx) control systems for $22 million in cash plus performance-based contingent payments.
The acquisition is expected to close in early January 2009 and will be funded primarily with cash reserves, Fuel Tech said in a release.
Located in Hooksett, New Hampshire, ACT offers an array of products and services to operators of utility and large industrial boilers. ACT designs, engineers and installs systems for combustion modification and post-combustion NOx control.
ACT employs 14 individuals and had 2007 revenues of approximately $21 million. As of December 1, 2008, ACT’s order backlog was approximately $11 million.
John F. Norris Jr., President and CEO of Fuel Tech, said, "ACT not only provides Fuel Tech with an immediate presence in the fast-growing combustion modification market, but also broadens our product portfolio with a total technical solution for NOx control, from the burner to the stack. Equally important, this acquisition will provide a natural conduit for potential follow-on business from those clients requiring deeper emission reductions that can only be satisfied with post-combustion NOx controls."
Fuel Tech is a technology company engaged in the worldwide development, commercialization and application of proprietary technologies for air pollution control, process optimization, and advanced engineering services. These technologies enable customers to produce both energy and processed materials in a cost-effective and environmentally sustainable manner.
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