ThermaFreeze, Inc., Makes Strategic Acquisition into $250,000,000 Industry
May 22, 2001 12:29:00 PM ET
SPOKANE, Wash.--(BUSINESS WIRE)--May 22, 2001--ThermaFreeze, Inc., (TM)(OTC:BB THFZ) is pleased to announce it has made a strategic entry into environmental services for the pulp and paper industry, large plants and mill sites. The Company has entered into Letters Of Intent to acquire 100% of Western Construction and Excavating, Inc. (WCE) and an 8 acre parcel of M1 zoned land suitable for staging on site remediation and land fill services for the Lewiston, Idaho operations of Potlatch, one of the nation's most environmentally advanced pulp, paper and lumber mills.
WCE is a respected provider of landfill services, fast response to industrial level remediation problems, and general construction oriented remediation services. Its revenues of approximately $1,000,000 per year are generated within the immediate geographic area of Lewiston.
The acquisition of WCE enhances the operations of another ThermaFreeze, Inc. subsidiary, Environmental Remediation Inc. (ERI) by extending its geographic coverage of Idaho, adding important equipment and manpower resources, and access to the pulp and paper industry for a broad range of ERI technologies and services. WCE will benefit from access to ERI's technology and engineering resources. Management anticipates that synergy between the two companies will result in an immediate increase of $1mm to $2mm in annual sales for WCE and increase overall group sales by $4,000,000 within the year.
The 8 acre parcel of M1 industrial land is adjacent to Potlatch and will provide the Company with a critical staging arena for expanded services and operations, building upon the 7 year relationship between Potlatch and WCE. ThermaFreeze, Inc. is examining other land in the area with the objective of assembling a parcel suitable for extended storage and treatment of pulp and paper by-products.
This package of acquisitions launches a major initiative for ThermaFreeze, Inc. in the pulp and paper industry and servicing major plants sites in general. Industries such as this are extremely difficult to penetrate, often taking many years of effort and significant investments in sales and marketing to establish the trust and confidence of potential customers. Major plants and mills throughout the country rely heavily upon the flexibility and willingness of these operators to fill critical service needs. The Company estimates that this specialized niche generates more than $250,000,000 in annual sales. The ability to bring more sophisticated engineering, technology and services to these customers without diminishing the advantages of the small operator will position ThermaFreeze, Inc. to quickly seize a substantial position in this market.
"Acquiring unique and specialized operators such as WCE fits well with the overall strategy of ThermaFreeze," states Dr. Galen Loven, Chairman of the Company. "We continue to develop methods to leverage our technology and capacity, as well as build strong internal growth through synergy. The WCE acquisition will serve as a template and platform from which we intend to expand rapidly throughout the United States as "in house" remediation service providers for large mills and plants. These types of acquisitions have dynamic growth potentials, provide enduring revenue streams, and windows of opportunity through which we can initiate strategic launches of innovative technologies. We are developing a very efficient model with which we can develop and execute these acquisitions quickly and cost effectively. The Company expects to remain busy growing vertically and horizontally as more of these opportunities come to our attention."
ThermaFreeze(TM) Inc. is a consolidator and operator of environmentally related businesses. Acquisitions and growth focus on energy, air, and water sectors. ThermaFreeze(TM) Inc. expects to sustain growth through its aggressive roll up strategy and internal synergies. |
