Baoho,
Before DBCO was discussed, Eco had stated that they were looking at 200-300 mill in possible acquisitions.
In November, Eco announced receiving a credit line $75 mill with a number of major firms, including Banker's Trust. The credit line was oversubscribed (banks willing to loan them more money than they needed).
biz.yahoo.com
Also from their last 10q, they suggest that a much more extensive line of credit is available.
At August 31, 1997, the Company and its operating subsidiaries had
an aggregate of $12.0 million in lines of credit, of which $10.0
million remained available to the Company and its subsidiaries,
and which are under the Bank Facility. The Bank Facility
provides that if the Company issues senior subordinated notes in
an aggregate principal amount of not less than $100 million prior
to March 31, 1998 and the proceeds thereof are used to repay the
term loan under the Bank Facility, the Bank will (i) increase the
revolving credit facility to $25 million and (ii) provide the
Company with a $50 million acquisition facility.
McGinnis has a five year track record of acquiring companies that are sometimes in trouble and making them profitable quickly. MM Industra had closed down when they were acquired for about $10 mill in 1996. In 1998, with Besim Halef in charge, we are expecting revenues from MM Industra in the vacinity of $50 mill with operating margins of approximately 30% ($15 mill in earnings).
McGinnis takes a no nonsense approach to running his company. He's a son and grandson of Chicago cops and you can be sure there that if they buy Dominion Bridge, there won't be any private limos, jets or other fluff.
Eco has other possible acquisition candidates, and although DBCO could fit into the Eco fold nicely, I won't be at all surprised of Eco just walks away from the table if DBCO management tries too many games.
David |
