An other building block
CET Environmental Services, Inc. Expands and Consolidates Water Treatment Services
ENGLEWOOD, Colo., Feb. 3 /PRNewswire/ -- CET Environmental Services, Inc. (Amex: ENV) today announced that the Company has acquired 100 percent of H20 Construction & Maintenance, Inc. (H2O), a privately held company headquartered in Lakewood, Colorado. The purchase price will be paid in cash and notes. With anticipated 1998 revenues of approximately $2.3 million, H20 specializes in the contract operations of water and wastewater treatment facilities, television pipe inspection, and infrastructure rehabilitation and repair. H20 is licensed by Stephens Technologies to provide the "NewLife System," a trenchless method of completing point repairs in virtually any type or size of sanitary sewer or storm sewer pipe without disrupting the pipe flow.
"The additional acquisition of H20 brings new contracts, services, and outstanding personnel for our existing and prospective clients. As the largest water treatment services provider in the Rocky Mountain region, this addition reflects our continuing strategy for growth through acquisition of quality water treatment companies who have specific capabilities, long-term contracts, and can give immediate positive impact to our bottom line earnings," said Steven H. Davis, President of CET Environmental Services, Inc. (CET). H20 has 20 current contracts including the city of Westminster, Wheat Ridge Sanitation District, and the Roxborough Park areas of the Denver metropolitan area.
Following completion of the purchase, H20 will be merged into CET's wholly owned subsidiary, Water Quality Management Corporation(WQM). In a move to consolidate its water treatment capabilities, the Company recently transferred key water treatment personnel and contracts from CET to the WQM subsidiary. WQM is exclusively focused on providing full-service design, build, operation, and privatization of water and wastewater treatment facilities. With the H20 purchase, WQM will provide these services to more than 90 facilities and 600 miles of pipeline, which treat and deliver approximately 10 million gallons of water per day for more than 24,000 residential and business connections. "We feel the growth of WQM even further enhances the growth and profitability experienced in CET's remediation and emergency response division, and should reflect the higher market valuation that the water treatment sector provides," said Davis. |
