Propak announces closing of Innovative Steam Technologies asset purchase and launch of new business unit
News Release
Airdrie, Alberta – July 2, 2018: Propak Systems Ltd. (Propak) today announced that it has completed purchase of the assets of Cambridge-based Innovative Steam Technologies (IST) from Deloitte Restructuring Inc. Effective July 2, 2018, Propak is operating IST as a division of Propak at the 549 Conestoga Blvd location in Cambridge, Ontario.
Under the asset purchase agreement, Propak acquired all IST inventory, select current fabrication contracts, and all IST business intellectual property including inventions; patents; trademarks; goodwill; confidential customer and sales information; copyrightable works; designs and industrial designs; and all proprietary, technical or confidential information, including all trade secrets, processes, procedures and know-how.
IST was founded in 1992 to provide Once Through Steam Generators (OTSGs) for heat recovery in Power Generation. The OTSG design provides several advantages over conventional boilers including a lighter and smaller design, a higher ability to be modularized, reduced footprint, unsurpassed operational flexibility, simplified control and dry-run capability. In 2009, IST expanded its portfolio to include Enhanced Oil Recovery (EOR) applications. IST’s patented proprietary design provides capability to supply 90%+ steam quality (SQ90TM), versus the typical 80% steam quality for conventional EOR OTSGs.
Now operating as a division of Propak, IST will provide design, manufacturing, installation and maintenance services of IST’s OTSGs for Power Generation, Process Industries and Enhanced Oil Recovery (EOR). Propak has hired 25 former IST employees with long-term experience and product knowledge.
The acquisition benefits Propak’s Heavy Oil Division, as Propak will continue to use the IST Enhanced Oil Recovery OTSGs for Propak’s projects. Power Generation is an exciting new field for Propak and opens the ability to provide a fully integrated solution from gas well to power transformer. Propak will contribute resources in engineering, procurement and field construction to reduce subcontracting costs and improving project execution efficiencies.
Propak Systems Ltd. was founded in 1976 and is a major engineering and design firm with comprehensive energy processing experience and an international network of multi-disciplinary engineering, technical and business professionals. Propak is also one of Canada’s largest manufacturers of energy processing equipment, modules and plants with a large skilled labour force in fabrication, construction and field service.
Through the purchase of assets, Propak has the exclusive right and capacity to sell, engineer, manufacture or service IST designs or technology or use any IST intellectual property outlined above effective June 27, 2018. Further information including information regarding proprietary technologies or processes are available from Propak Systems Ltd.