Q: What is outsourcing and why is it an opportunity?
A: Outsourcing is when a company goes to outside experts to solve internal problems.
Manufacturers have limited resources and choose to focus those resources on the manufacture of their own products. Most do not have the in-house expertise and choose not to develop that expertise and therefore contract out the solution to their water treatment problems. Outsourcing is a major consideration in today’s world of water scarcity and more stringent regulations and environmental considerations. OriginClear Group companies are ideally positioned to service those needs.
Q: What is decentralization and why is it an opportunity in water treatment?
A: Decentralization of water treatment is the trend from central municipal waste water treatment plants to more local municipal and industrial treatment facilities.
Decentralization has been a fact in many technologies, such as the trend from mainframes to personal computers or from central power grids to solar and wind off-grid generation. The trend is just as great in the water treatment market. Historically, municipal waste water treatment plants (WWTPs) have treated waters from all users. However, today WWTPs are not accepting water from many sources either because of limited capacity or tighter effluent regulations or unacceptable contaminants. As a consequence, smaller more local WWTPs are being built and many companies are required to treat their own effluent streams.
Q: Why are you acquiring companies?
A: There is a historic opportunity to consolidate the highly fragmented water market. Corporations face water scarcity and more stringent regulations, and increasingly are looking to outsource their water management needs to external experts. The experts are still local, specialized service companies, rather than centralized companies that offer a wide spectrum of desired solutions. This consolidation is inevitable.
OriginClear is a prominent publicly traded company with tens of thousands of highly supportive shareholders. We believe we can be the platform for the badly-needed consolidation in the water industry.
Q: What was special about your first acquisition?
A: PWT fits our acquisition profile perfectly.
Progressive Water Treatment (PWT) is a stable and growing service provider that delivers outstanding customer satisfaction. Its President, Marc Stevens, is a committed and dynamic leader, and he has the backing of a solid team. He has developed a strong regional presence and has lots of room to grow. Importantly, PWT fits our unifying qualities—quality and performance, exceptional customer care, complete responsibility for the solution.
Q: What does this mean for an acquired business? Will anything change?
A: Under our agreements, the acquired company will become a wholly owned subsidiary of OriginClear. While we control the company as a division, it will continue to operate independently on a day- to-day basis.
Acquired companies will benefit from targeted support from OriginClear. We can help companies develop a strong web e-commerce presence, optimize their logistics, and streamline operations.
Divisions within The OriginClear Group of Companies will remain the same: strong, stable companies with their longtime leaders at the helm.
Q: Why are you focusing on acquiring other companies rather than strengthening your core business?
A: Our core breakthrough technology, Electro Water Separation with Advanced Oxidation (EWS:AOx), is proven and reaching the market through licensees and joint ventures.
With our technology business plan sharpened and our commercial team in place, we now have the bandwidth to expand our market share by acquiring companies.
It’s our mission to improve the quality of water worldwide with our OriginClear Group and Technologies divisions working in tandem.
Q: How are you managing to acquire multiple companies with stock?
A: OriginClear is a prominent public company with thousands of shareholders.
Entrepreneurs who have built profitable and growing water service companies may believe that acquiring a block of our stock is a great way for them to convert their fast-growing asset into a substantial piece of a public company.
Q: Why would a water treatment company want to become part of The OriginClear Group™?
A: We expect that OriginClear’s strategy of using its stock as a public company to acquire revenue and profit- generating companies will only increase the value of the public company.
As that stock value increases over time with the acquisitions, the value of acquisition to the entrepreneur could be multiplied, creating a significant incentive.
In addition, OriginClear’s vision to build an extensive network of solution providers may assist each division’s growth through the sharing of technology and market opportunities.