Watson General/USTMAN Announces Strategic Restructuring and
Consolidation of Merged Operations to Enhance Performance
IRVINE, Calif.--(BUSINESS WIRE)--July 9, 1997--
Kansas City and Irvine Operations Will Be Consolidated Into
Denver Office, Toxguard Systems and Toxguard Fluid Technology
Subsidiaries Will Be Divested
Watson General Corp. (Nasdaq:WGEN), which acquired USTMAN Industries Inc. in May 1997, announced plans for a major restructuring and consolidation of the combined companies' operations.
Watson General/USTMAN is the leading provider of statistical inventory reconciliation (SIR) services in the United States.
Among the steps to be taken are:
-- The Kansas City, Mo., and Irvine operations of Watson General
will be closed and their operations consolidated into the
Denver operations of USTMAN.
-- A reduction in personnel at the combined operations will
optimize staffing by eliminating duplicate functions, and
thereby reducing operating expense levels.
-- Watson General/USTMAN will focus on providing statistical
inventory reconciliation and tank monitoring software and
services. As a result, Watson General's Toxguard Systems
and Toxguard Fluid Technology subsidiaries will be divested.
-- Watson General will collapse its holding company structure in
favor of a single corporate entity for all operations. The
company's name will be changed to Ustman Technologies Inc.,
pending approval by shareholders at the annual meeting planned
for Fall 1997.
These actions are expected to be largely completed by the end of August 1997.
``The acquisition by Watson General of USTMAN dramatically increased both our current market share and future potential
in SIR and underground storage tank (UST) monitoring,'' said Ronald G. Crane, chief executive officer.
``The restructuring and consolidation should enhance performance of the combined companies,'' said Dan Cook, president.
``The actions also should strengthen the platform from which we implement our strategic plan for aggressive growth through a
combination of internal development and acquisition.''
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 expand to cover every
UST in the United States in 1998.
Except for the historical information contained in this release, the other statements in this release are forward-looking
statements that involve risks and uncertainties, including without limitations, the company's ability to sell its products, the
timely negotiations of new contracts, the level of increased sales with existing customers, as well as such other risks as from
time to time may be detailed in the company's Securities and Exchange Commission reports. |
