Here is one of Joe's old picks:
Monday June 22, 9:32 am Eastern Time
Company Press Release
GreenMan Technologies to Acquire SCRAP Tire Recycling Operations From Republic Industries
Acquisition to Add $5 Million in Revenues; Over 4 Million Tires/Year
LYNNFIELD, MA--(BUSINESS WIRE)--June 22, 1998-- GreenMan Technologies, Inc. (NASDAQ:GMTI - news, GMTW - news; BSE: GMY, GMYW) announced today that it has signed a letter of intent to acquire the scrap tire collection and processing components of United Waste Service, Inc. (United), a wholly owned subsidiary of Republic Industries, Inc. (NYSE: RII - news). The United operations being acquired from Republic Industries are located in Lawrenceville, GA and Batesburg, SC. Specific details of the proposed transaction were not disclosed.
Republic Industries, Inc. is a holding company whose subsidiaries are engaged in solid waste services, automotive rental and automotive retailing.
Bob Davis, GreenMan's CEO, stated, ''This major acquisition is yet another significant leap forward for GreenMan by addressing our need for added capacity at all levels of GreenMan's business. It will enhance GreenMan's position in the tire recycling industry by adding $5 million in profitable revenues and over 4 million additional passenger tire equivalents (PTE's) per year. Of particular importance, GreenMan will have an expanded presence in the Southeastern U.S. We will realize significant consolidation benefits by integrating United's Georgia scrap tire volume with GreenMan's Jackson, Georgia operation -- which recently doubled its processing capacity.
''Opportunities for cost savings through consolidation in Georgia are enormous and United's Atlanta-area volume increases the cost-effectiveness of meeting our 1.5 million tire per year supply commitment to Blue Circle Cement in Atlanta. Further, United's profitable South Carolina facility extends our Southeast prominence and enhances the efficiencies of supplying our growing number of customers. The United scrap tire volume, coupled with increased supply from the recent tire recycler acquisition in Mississippi (6/1/98 press release) and our existing Jackson, GA operation, will allow GreenMan to supply the vast majority of raw material needs for our Louisiana crumb rubber plant internally. We will also be in a position to expand into merchant chemical production at multiple sites within the next year or so (5/4/98 press release).''
Jim Cosman, president and COO of Republic Industries' waste division, added, ''Our waste division's efforts have been focused on getting back to basics, and it was determined that tire recycling was not part of our core business. This acquisition represents a better operational fit with GreenMan's expertise in scrap tire collection. During United's divestiture proceedings, we talked to all significant companies in the tire recycling business and determined that GreenMan was the superior company with which to align ourselves. We look forward to a long and mutually beneficial relationship with GreenMan in the coming years.''
GreenMan Technologies, Inc. addresses the worldwide issue of tire disposal. Over 260 million tires are discarded in the U.S. annually. Through vertically integrated operations, GMTI recycles scrap tires into a wide variety of end-user specialty materials. With plants in Savage, MN, Jackson, GA, Birmingham, AL, St. Francisville, LA and headquarters in Lynnfield, MA, operations include tire collection and abatement/remediation services; processing of whole tires into metal-free chips for civil engineering and alternative fuel applications, and further processing of tire chips into crumb rubber (rubber granules and powder). Application of advanced modification technologies transform the company's super-fine crumb rubber powders into specialty materials for use in high-volume, multi-billion dollar end markets including modified crumb rubber for asphalt and the company's proprietary GEM-Stock materials (a raw material made from recycled plastics and rubber from tires). Through its DuraWear subsidiary, the company manufactures and markets wear-resistant ceramic, polymer composite and alloy steel products for bulk material handling systems.
With the exception of the historical information contained in this release, the matters described herein contain forward-looking statements that involve risk and uncertainties that individually or collectively impact the matters herein described, including but not limited to product acceptance, economic, competitive, governmental, results of litigation, technological and/or other factors, outside the control of the company, which are detailed from time to time in the company's SEC reports, including the report on Form 10-QSB for the quarter ended February 28, 1988. The company disclaims any intent or obligation to update these forward-looking statements.
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Contact:
Debra Potter, Senior Editor
John Chuhran, Media Consultant
Porter, LeVay & Rose, Inc.
212/564-4700
Cindy Barker
(781) 224-2411 |
