Watson General/USTMAN Acquires ATC
Combined Companies Have More Than 50,000 Tanks under Contract
LAKEWOOD, Colo.--(BUSINESS WIRE)--Dec. 18, 1997--Watson General/USTMAN (Nasdaq: WGEN - news) has acquired Advanced Tank
Certification Inc. (ATC) of Knoxville, Tenn. for cash and stock, effective Dec. 17, 1997. The terms of the transaction were not disclosed.
In connection with the acquisition of ATC, the company has secured term and acquisition financing from BankBoston. The company intends to use this financing to facilitate the ATC acquisition, to pay current debt, to facilitate prospective acquisitions, and for working capital purposes. In addition, Watson General had received earlier this year $7 million in financing from Sagaponack Partners L.P., to fund the acquisition of USTMAN.
Watson/USTMAN, which will be renamed Ustman Technologies Inc. upon approval by shareholders at its next annual meeting, is the leading
provider of statistical inventory reconciliation (SIR) services in the United States with more than 50,000 underground storage tanks under contract after giving effect to the acquisition. ATC was considered the fourth largest provider of SIR services. The merger will consolidate operations at Watson/USTMAN's Lakewood headquarters, eliminating duplication and increasing efficiencies.
SIR is a preferred method of detecting leaks in storage systems and of managing liquid inventory held in storage tanks.
''The consolidation of the SIR operations and customers of Watson/USTMAN and ATC, together with new financing resources, confirms our leading position in the expanding SIR market,'' said Dan R. Cook, Watson General president and CEO. ''The company also will benefit from the industry and management expertise that ATC will contribute.''
Three senior executives from ATC join Watson General/USTMAN
James B. Grant, who was president and CEO, has been appointed vice president for Corporate Development. He was with ATC since 1988 and was instrumental in broadening its mix of services as well as attracting key customers. Previously, he worked with the Tennessee Valley Authority NYSE:TVA - news; TVA).
Erica Bengtson, who was chief operating officer and secretary/treasurer, has been named chief operating officer. She was with ATC since 1987 and also worked as director and chief analyst of the SIR department, maintaining frequent contact with customers and regulators.
David Booth, who was vice president and general counsel, has been appointed chief financial officer and general counsel. He began providing legal services to ATC in 1988 and became General Counsel in 1993.
Watson General/USTMAN is the largest provider of critical information to owners of underground storage tanks through statistical inventory
reconciliation services and remote tank monitoring -- building a recurring revenue base from each tank being monitored. Statistical inventory reconciliation (SIR) is one of the most cost-effective methods of detecting leaks in underground storage tanks and is fully approved for purposes of compliance with EPA leak-detection regulations, which cover nearly every UST in the United States.
Contact:
Watson General/USTMAN
Dan Cook, 800/253-8054
or
Bruce Russell, 310/216-1414
More Quotes
and News:
Tennessee Valley Authority (NYSE:TVA - news)
Watson General Corp (Nasdaq:WGEN - news) |
