Natural Shrimp plans US$10M takeover of water treatment company
Texas-based shrimp producer NaturalShrimp has signed a letter of intent to acquire a water treatment company that specializes in electrocoagulation (EC) technology.
The letter of intent indicated that NaturalShrimp is prepared to takeover the assets of Florida-based F&T Water Solutions LLC for $10 million. The aquaculture company is offering to pay $3 million in cash and the rest in stock, subject to adjustment.
NaturalShrimp intends to leverage F&T’s technology to find other opportunities in the recirculating aquaculture system (RAS) market, according to a company press release.
“We are extremely excited about this acquisition. It will consolidate our intellectual property as it pertains to non-shrimp aquatic species and other RAS opportunities into a new wholly owned subsidiary,” said William Delgado, chief financial officer of NaturalShrimp.
Delgado added that F&T has “water and water related opportunities that will be evaluated for potential sale or spin-out as appropriate.”
“We are very happy to be making this transition to NaturalShrimp. It is our belief that they will be able to expand the EC technologies and other technologies currently under trial into a cohesive strategy that will benefit the planet,” said Peter Letizia, president of F&T.
F&T is a 30-year-old company that specializes in electrocoagulation, a method of removing total suspended solids (TSS), metals, ammonia, nitrates, phosphate, silt, oils, bacteria, and other contaminants from water. The technology can be used in cleaning mining locations, landfills and aquaculture facilities. The company also offers an advanced water treatment system branded as Variable Electro Precipitator (VEP), in conjunction with other pre- and post-treatment components to provide portable and fixed based solutions to customers.
Gerald Easterling, chief executive officer of NaturalShrimp, said his company has been working with F&T since 2014 and that NaturalShrimp also holds patents in electrocoagulation technology
“We also expect to file additional patents around the expansion of the application and use of the EC technology. In addition, in conjunction with F&T and others, we have launched several trials around salmon, barramundi, and tilapia. We are very excited to continue our success of these ventures along with other joint venture opportunities to come,” he said.