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h₂o innovation PRESS RELEASE For immediate release TSXV : HEO Growth Paris : MNEMO : ALHEO OTCQX : HEOFF H2O Innovation Announces Two Northeast US Acquisitions Solidifying its Operation & Maintenance Business Line All amounts in Canadian dollars unless otherwise stated . Quebec City , December 15 , 2021 - ( TSXV : HEO ) – H2O Innovation Inc. ( " H2O Innovation ” or the " Corporation " ) proud to announce it executed this morning all the documents related to the acquisition of JCO , Inc. ( “ JCO ” ) and of Environmental Consultants , L.L.C. ( “ EC ” , and together with JCO , the " Targets " ) from arm's - length third parties . Each of the Targets offers complete operation , maintenance and management ( " O & M " ) services to municipal and industrial water and wastewater clients from the same region , the Hudson Valley Region in the State of New York . The acquisition of the Targets , which were owned and operated separately , complements H2O Innovation's current business activities in the Northeast of the United States and solidifies its position in the North American O & M market . With more than 70 years of combined experience , H₂O Innovation , JCO and EC position themselves as significant players in the O & M sector in the State of New York with a total of nearly 200 customers . JCO and EC both operate some sizeable industrial facilities which will grow the industrial customer base of H2O Innovation's O & M business line . Industrial streams are often more complex to treat and could lead to opportunities for H2O Innovation's WTS business line to offer added value membrane solutions which could ultimately lower the operating expenses for the customers . It is expected that this consolidation will foster synergies as the customers currently served by H2O Innovation , JCO , and EC will be offered value - added services that should potentially generate new business opportunities , given the Corporation's global breadth of technology , its operation expertise , and its aftermarket support . Additionally , JCO and EC operate collectively numerous membrane plants that may benefit from the specialty chemicals of H2O Innovation ; which specialty chemicals allow membrane water treatment facility to run longer without cleaning , thus contributing to lower operating expenses . " These two O & M acquisitions are aligned with our 3 - Year Strategic Plan . They will allow us not to only expand our O & M platform in the State of New - York , which is the 4th largest populated state in the USA with 19.3 M inhabitants¹ , but also to provide a unique opportunity to deploy our membrane process expertise and our related specialty products to multiple municipal and industrial customers all along the Hudson Valley Region . We foresee multiple sales synergies between our different business lines , including JCO and EC , which will contribute to solidify customer retention , thus recurring revenues . On top of that , we are welcoming with open arms an experienced team of approximately 120 employees within the H2O Innovation family bringing the total number of employees to nearly 915 . Financially , both transactions are expected to be immediately accretive to H₂O Innovation's net earnings and EBITDA . On a pro - forma basis , these acquisitions are bringing the Corporation one step 1 As per the website https://www.statista.com . 1