Advanced Emissions Solutions to Acquire ADA Carbon Solutions for $75 Million
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Advanced Emissions Solutions (ADES), a leader in emissions control solutions for coal-fired power generation and industrial markets, has signed a definitive purchase agreement to acquire ADA Carbon Solutions, a private company and a leading producer of Powdered Activated Carbon (PAC) solutions for the coal-fired power plant, industrial and water markets.
Total consideration for this acquisition is $75 million. After closing, ADES will launch a search for a new chief operating officer to execute upon Carbon Solutions’ ambitious forward business plan.
“Our past execution related to growing refined coal, navigating tax reform, the return of capital to shareholders and focused corporate restructuring has provided the opportunity to complete the exciting acquisition. Pairing Carbon Solutions’ recurring revenue base with our expected future refined coal cash flows provides a platform of growth for both segments of our business,” said L. Heath Sampson, president and CEO of ADES.
“Our unwavering commitment to growing our refined coal business will continue. Tax reform and IRS clarity have prompted many large institutions to come back to the refined coal market, and Tinuum has line of sight to contract an additional 12 million annual tons of refined coal with both existing and new tax equity investors,” added Sampson.
“Carbon Solutions is the North American leader in activated carbon for coal-fired power plants, helping ensure clients’ mercury and air-toxics standards compliance. The company was co-founded and owned by ADES until 2011. Carbon Solutions brings a recurring revenue stream, strong financial profile and natural synergies given our history and shared client base. Carbon Solutions has earned a 45 percent share of the North American PAC production market for mercury control through its industry-leading reputation and strong relationships with its customers. Carbon Solutions’ unique collection of assets allows them to be the lowest cost provider of activated carbon in the industry - and we expect this cost advantage to grow over time through planned plant utilization increases,” said Sampson.
About Advanced Emissions Solutions
Advanced Emissions Solutions, Inc. serves as the holding entity for a family of companies that provide emissions solutions to customers in the power generation and other industries.
ADA-ES, Inc. (ADA) is a wholly-owned subsidiary of Advanced Emissions Solutions, Inc. (ADES) that provides emissions control solutions for coal-fired power generation and industrial boiler industries. With more than 25 years of experience developing advanced mercury control solutions, ADA delivers proprietary environmental technologies, equipment and specialty chemicals that enable coal-fueled boilers to meet emissions regulations. These solutions enhance existing air pollution control equipment, maximizing capacity and improving operating efficiencies. Their track record includes securing more than 40 U.S. and international patents for emissions control technology and systems and selling the most activated carbon injection systems for power plant mercury control in North America.
Tinuum Group, LLC is a 42.5 percent owned joint venture by ADA that provides ADA’s patented Refined Coal CyClean™ technology to enhance combustion of and reduce emissions of NOx and mercury from coals in cyclone boilers.
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