OAKLEAF Announces Strategic Alliance with Encompass
EAST HARTFORD, Conn.--(BUSINESS WIRE)--July 25, 2000--OAKLEAF Waste Management, LLC the nation's fastest growing waste management company with 275% in annualized growth, today announced a strategic alliance agreement with Encompass Services Corporation (NYSE: ESR), the largest facilities services company in the United States. Under the agreement, Encompass would acquire a 12.5% minority interest in OAKLEAF's operations.
OAKLEAF Waste Management is a national and international waste management provider that addresses the need for a customer service-oriented company in the waste industry. The company specializes in the management of waste disposal contracts and provides service management functions for large, multi-site customers in the retail, restaurant, hotel, manufacturing and property management industries. They also offer a full e-commerce interface enabling on-line bidding, consolidated invoicing, electronic billing, payment options, and service monitoring. One of OAKLEAF's strengths is in the consolidation of multiple location customers who could have as few as ten or as many as several thousand locations. Including Pier 1 Imports, Petco and Saks among its 120-plus customers, OAKLEAF manages over 40,000 locations. At it current run-rate, OAKLEAF's year 2000 annual sales volume is projected to reach $84 million. The alliance with Encompass is expected to deliver another $70 million in revenue. In addition, OAKLEAF plans to expand its coast to coast growth through the acquisition of other waste management services and brokerage firms.
Encompass Services Corporation, based in Houston, Texas, is the largest provider of facilities systems and solutions in the United States, boasting revenues approaching $4 billion. Encompass provides a portfolio of electrical technologies, mechanical services and cleaning systems to commercial, industrial and residential customers nationwide. The company, with over 30,000 employees, has operations in some 250 locations, providing services in each of America's 100 largest cities. Additional information and press releases about Encompass are available on the company's Web site a www.encompserv.com.
"We are enthusiastic about the natural cross-selling opportunities inherent in this relationship", said Jim Barnes, President of OAKLEAF. "Our clients appreciate our one-stop, multi-site coverage and will recognize this leverage in Encompass as a single national source for multiple facilities services. At the same time, the buying power, price advantage and superior service secured by OAKLEAF should be of interest to Encompass national account customers."
Joe Ivey, President and Chief Executive Officer of Encompass said, "OAKLEAF brings a high-value addition to our service offering portfolio. Their customers have achieved a 5-25% savings on waste and recycling expenses, a benefit we want to provide to our customers. In turn, access to OAKLEAF's impressive customer base gives Encompass another national channel, through which our electrical, mechanical and cleaning services can be delivered.
OAKLEAF's customer offerings include a new proprietary software package that can locate a retail outlet's nearest trash hauler and other services based on the customer's location. The program allows for store location information, container requirements, and current pricing to be downloaded into OAKLEAF's proprietary software package. The program identifies the store's latitude and longitude by scanning the store's zip code. It then compares it to OAKLEAF's National Hauler Database which assigns potential bidders based on the distance to the store, allowing a choice of 10, 15, 20 miles or any desired distance. Bids are solicited, captured and communicated through an integrated broadcast fax system. The results are then analyzed and reported to the customer based on the customer's requirement profile. |
