Phoenix Associates Announces Acquisition of Construction Company and Updates Post-Disaster Initiatives
Thursday October 6, 10:03 am ET
COVINGTON, La.--(BUSINESS WIRE)--Oct. 6, 2005--Phoenix Associates Land Syndicate (Pink Sheets:PBLS - News) today announced that it has completed the acquisition of 3-D Builders, Inc. in a deal for stock and cash, in an effort to increase its construction division capacity in the wake of Hurricane Katrina and Hurricane Rita.
Phoenix management anticipates that the acquisition of the residential construction company will add over $2 million in revenue and be accretive to earnings in the current fiscal year alone. These estimates do not include revenue that could be realized from the post-disaster rebuilding effort in which CNN.com, subsidiary of Time Warner (NYSE:TWX - News), has reported that between 140,000 and 160,000 homes need to be leveled and rebuilt in and around New Orleans.
The company has also added additional human resources to pursue work through the U.S. Army Corps of Engineers, the Federal Emergency Management Agency (FEMA) and regional contractors that have been assigned work in the disaster relief.
CEO, Paul Alonzo, commented, "We continue to aggressively scale operations through strategic acquisitions, particularly within our construction division, in order to fulfill the immediate construction related needs within Louisiana and Mississippi. Additionally, we are pursuing all avenues available to deploy as much of our 100,000,000 tons of raw sand, gravel and soil as possible to use in the rebuilding of the disaster stricken areas."
The company is working on and anticipates that it will have additional acquisition and rebuilding-related announcements in the near future.
About Phoenix Associates Land Syndicate
Phoenix Associates Land Syndicate, through its wholly-owned subsidiaries, is engaged in the natural resource development, commercial transportation, real estate development and diversified construction businesses. Current company assets include oil leasehold and drilling operations, sand and gravel quarry and mining operations, a contract hauling trucking fleet, diversified construction operations and land-development leaseholds. The Company is experiencing significant organic growth in each of these businesses and is aggressively acquiring synergistic businesses in order to rapidly build capacity. |
