QualityStocks would like to highlight General Environmental
Management, Inc. (OTCBB: GEVI). The company is a full-service hazardous waste
management and environmental services firm providing integrated environmental
solutions managed through its proprietary web-based enterprise software,
GEMWare, including the following service offering: management and
transportation of waste; design and management of on-site waste treatment
systems; management of large remediation projects; response to environmental
incidents and spills; and environmental, health and safety compliance.
In the company’s news today,
General Environmental Management, Inc. announced that it has signed
a definitive letter of intent to acquire Santa Clara Waste Water (SCWW), a
profitable, 50 year old wastewater treatment business. Earning the reputation
of being one of the top 100 privately owned non-hazardous wastewater utilities
in the U.S., SCWW has treated more than 2 billion gallons of wastewater. During
2008, the company generated over $34.8 Million in revenues.
“We are thrilled to have come to an agreement to acquire SCWW and
are eager to work with them to achieve their goal of becoming the premier
independent non-hazardous wastewater management company; first in California,
then the western region and eventually in the United States,” stated Tim
Koziol, GEM Chief Executive Officer. “We are acquiring not only a long time
successful company with a great track record and valuable assets, but are
partnering with one of the finest management teams in the environmental
management business led by SCWW CEO, Doug Edwards. Doug and his team have set
the standard for wastewater management. Their facility situated on five acres
of strategically located land in Santa Clara Valley, along with their unique
and invaluable 12.7 mile pipeline from their facility to the City of Oxnard’s
water reclamation center, gives GEM a corner stone to build a regional and then
national presence in the water treatment market.”
“After getting to know GEM over that past few years, I am very
excited to be uniting with their management team to build upon the success we
have earned at SCWW,” commented Doug Edwards. “I have had a vision of growth
for SCWW and am confident that by teaming with GEM, together we’ll be able to
make that vision a reality. The wastewater treatment market is large and will
continue to grow as demand for water treatment increases exponentially. With
its key assets, experience, knowledge set and strategic plan, SCWW is uniquely
positioned to become one of the foremost wastewater treatment companies in the
U.S. In addition, we have a number of unique products and services in
development that we can bring to market faster and with greater efficiency with
the help of GEM’s talented management group.”
GEM Chief Financial Officer, Brett Clark, added, “SCWW has a very
profitable business model. We are acquiring the company and all of its assets
for approximately three times its trailing EBITDA, plus the assumption of long
term debt secured by SCWW’s plant and equipment. SCWW’s revenues in 2008 were
approximately $7.6 million. The transaction is very accretive to GEM and will
be paid for with a combination of cash, debt, and stock over the next three
years. Details of the transaction will be provided upon closing, which is
expected to occur within the next 60 days.”
Tim Koziol also provided an update on GEM’s strategic plan, ”We
will be focused on closing the SCWW transaction and continuing our research and
development to strategically enter the waste-to-energy markets as discussed in
last week’s news release. We will keep shareholders posted on all
developments.”
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Forward-Looking Statement:
This release may contain forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended. All forward-looking
statements are inherently uncertain as they are based on current expectations
and assumptions concerning future events or future performance of the company.
Readers are cautioned not to place undue reliance on these forward-looking
statements, which are only predictions and speak only as of the date hereof.
Risks and uncertainties applicable to the company and its business could cause
the company's actual results to differ materially from those indicated in any
forward-looking statements.
