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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: tonto who wrote (14350)	9/10/1998 10:18:00 AM
From: Czechsinthemail	Read Replies (2) \| Respond to of 120523

Here's a special situation on a buyout. VALE is trading at a significant discount to the buyout, which is scheduled to be completed in 4Q. ---------------------------------------------------------------------- HydroChem to Acquire Valley Systems Operations PR Newswire - September 09, 1998 09:29 HOUSTON, Sept. 9 /PRNewswire/ -- HydroChem Industrial Services, Inc. and Valley Systems, Inc. (Nasdaq: VALE) announced today that HydroChem will acquire all of Valley's operational assets. The transaction is subject to finalizing schedules and exhibits to the definitive agreement, completing due diligence and obtaining regulatory and Valley stockholder approval. The purchase price is approximately $29.8 million, plus the assumption of Valley's bank debt and certain other liabilities. The companies expect to conclude the acquisition during the fourth quarter of this year. Valley Systems, based in Canal Fulton, Ohio, provides specialized industrial cleaning services, primarily ultra high pressure water jetting, metal cutting and vacuum services, to the primary metals, power generation, chemical, plastics, and petroleum refining industries. The company employs approximately 350 people and services customers from 18 locations. Revenue for the fiscal year ended June 30, 1998, was $24.4 million. "Valley Systems' experienced people, specialized service offerings and 'blue chip' customer base complement HydroChem's growth extremely well, particularly our near-term geographic expansion plans," said Tom Carter, HydroChem chairman and chief executive officer. "With these additional resources, HydroChem is well positioned to remain a leading provider of industrial cleaning services." Ed Strickland, president of Valley Systems, said, "Customers and employees of both companies will benefit greatly from the broader range of services and greater financial resources made possible by combining HydroChem and Valley Systems." HydroChem, based in Houston, has almost 1,900 employees and 50 offices throughout the U.S. and in Singapore. The company provides industrial cleaning services, including hydroblasting, chemical cleaning and vacuum services, to the petrochemical, oil refining, electric utility, pulp and paper and metals industries. SOURCE HydroChem Industrial Services, Inc. /CONTACT: Dorothy Botnick of HydroChem Industrial Services, Inc., 713-462-2130; or Dennis Sheets of Valley Systems, Inc., 330-854-4526/ (VALE)