Wednesday, 6 July 2011

New Growth Business Plan at IWG

International Water-Guard (TSX-V: IWG)

Basic Shares: 38.1 million
Fully Diluted: 45.6million


Today marks a new era for IWG Technologies Inc. with the announcement of its first acquisition as part of a mergers and acquisitions program that is designed to continuously add to the IWG family.

It's a change in the business model for IWG, from dependence on one core product - sophisticated water storage and water treatment technology for aircraft - to seizing on opportunities that build on IWG's strengths while also building IWG's bottom line.

Today's announcement is about an agreement to purchase an aviation water heater product line from U.S.-based Keltech Inc. To view a video where IWG President & CEO, David Fox, explains the business strategy and gives further background on this first acquisition target, please click here.

Keltech makes on-demand water heaters for a large variety of applications. But this product line was its only aviation product. The water heaters are used on high-end aircraft requiring lots of hot water - those equipped with showers, for example - in the VIP and business jet markets.

IWG has been building up that same customer base for its water treatment and water storage technology for the past 20 years. So for that and other reasons it's a natural fit.

Keltech produced annual revenues of roughly $500 thousand from this line but IWG believes it can build that up.

To view the news release on the agreement to purchase the Keltech line, please click here.