ENGY Enviro-Energy Corporation to Add $20,000,000 Annual Sales to Energy Business
Business Editors
SPOKANE, Wash.--(BUSINESS WIRE)--Jan. 15, 2002--Enviro-Energy
Corporation (OTCBB:ENGY)(Germany:676401-EVM.BER),
www.enviro-energycorp.com, is pleased to announce that its wholly
owned subsidiary, Energy Flow Management Inc., has entered into an
agreement to acquire 100% of Colvico, Inc., a Pacific Northwest based
company specializing in conventional and alternative
energy/co-generation systems installation and maintenance.
In addition to bringing essential technical, licensing and bonding
capacity to the Company, Colvico will add $20,000,000 to annual sales,
$3,500,000 to assets, and $1,500,000 to net operating profit. This
$4,000,000 purchase will be funded with preferred shares from
Enviro-Energy Corporation.
"This acquisition is a significant milestone in the development of
our waste-to-energy business," states Michael Funk, CEO of Energy Flow
Management Inc. "We are driven to complete due diligence and close as
soon as possible. With the addition of Colvico's revenues, assets, and
technical resources we are now a major player in the energy and waste
conversion business. We believe that we will be able to leverage these
assets quickly, crystallizing many opportunities we have developed for
our Enviro-Energy(TM) Bio-Waste-To-Energy Systems."
"Enviro-Energy Corporation has impressed us with their ability to
formulate and implement a solid asset and profit oriented plan within
environmental and energy sectors. The depth and breadth of their
vision, building management pool, and industry timing makes this a
very attractive and compelling transaction for us," states Cory
Colvin, Chairman and CEO of Colvico Inc. "We expect continued growth
and high performance from Enviro-Energy and look forward to
participating aggressively in their future."
"This purchase works well within our newly formed strategy of
supporting our long term cash flow operations such as waste-to-energy
plants with strong operating companies contributing high growth in
sales, immediate profit contributions, and in-house management,
technical, engineering and construction resources," states Galen
Loven, Chairman of Enviro-Energy Corporation. "In addition to these
benefits we continue to grow our business with returns on capital
exceeding 30%, and are able to leverage assets with conventional
assets based lending, minimizing potential dilution of our issued and
outstanding shares.
"By adapting our plan execution to prevailing market conditions we
are able to move forward, meeting targets, and building solid
corporate fundamentals," he continues. "Our skid-mounted
bio-waste-to-energy systems are finding strong interest in domestic
and international markets. As we build a utility based infrastructure
in this arena, the addition of Colvico permits acceleration of order
taking. We anticipate a continuation of positive developments in the
sector throughout the year."
Enviro-Energy Corporation is a consolidator and operator of
environmentally related businesses. Acquisitions and internal growth
focus on energy, air, and water sectors. The Company expects to
sustain growth through its aggressive roll up strategy, internal
synergies and the deployment of its ENVIRO-ENERGY(TM) systems
throughout the world.
Forward-looking statements in this release are made pursuant to
the "safe harbor" provisions of the Private Securities Litigation
Reform Act of 1995. Investors are cautioned that such forward-looking
statements involve risk and uncertainties, including without
limitation, continued acceptance of the company's products, increased
levels of competition for the company, new products and technological
changes, the company's dependence on third party suppliers,
intellectual property rights and the other risks detailed from time to
time in the company's periodic reports filed with the Securities and
Exchange Commission Fair Disclosure Regulation, effective, October
2000.
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CONTACT: Enviro-Energy Corporation
Galen Loven, 509/921-9150
gdl@morals.net
www.enviro-energycorp.com
KEYWORD: WASHINGTON
INDUSTRY KEYWORD: ENERGY ENVIRONMENT MERGERS/ACQ
SOURCE: Enviro-Energy Corporation
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