OriginClear has agreed to acquire Texas-based Progressive Water Treatment (PWT), which designs and manufactures a range of water treatment systems for municipal, industrial and pure water applications.
The transaction is expected to be completed by October this year.
Following the deal, PWT will become a subsidiary of Los Angeles-based OriginClear. PWT offers water treatment systems and services for several clients across the United States and abroad.
It also offers a range of services including maintenance contracts, retrofits and replacement assistance. PWT expects its revenues to cross $6m in 2015.
The deal has been executed through preferred stock offering which can be converted to common stock in three annual increments starting 12 months from the closing of the deal.
OriginClear CEO Riggs Eckelberry said: "We believe acquiring PWT will be a huge win for OriginClear and a key part of our strategy to build a network of water treatment companies in the US.
"We expect that our Family of OriginClear Companies will not only generate top line and bottom line growth for our investors, but will help accelerate the organic growth of our Electro Water Separation technology into new markets."
PWT president Marc Stevens said: "We believe OriginClear’s vision to build an extensive network of solution providers, is going to help us grow dramatically.
"Together we can better reach growing market demand for exceptional water treatment solutions and services."