Seprotech Closes Acquisition of Water Operations Business and Establishes Water Utility Division
29 January 2009 - 12:28AM
Marketwired Canada
Seprotech Systems Inc. (TSX VENTURE:SET) ("Seprotech") is pleased to announce
that it has closed the purchase of Envirosearch Operations Incorporated
("Envirosearch"), a private company located in Milton, Ontario. Envirosearch has
historic annual revenues (unaudited) of approximately $2,000,000 and is an
operator of water and wastewater treatment plants in Ontario. The purchase price
for Envirosearch consists of 400,000 common shares of Seprotech and $500,000
payable over approximately five years. In addition, the agreement includes a
provision for the founder of Envirosearch to be paid a commission for improved
performance of Envirosearch's historical business.
On October 21, 2008, Seprotech announced the establishment of a division focused
on operating and servicing water and wastewater treatment systems. Seprotech is
merging this division with the business of Envirosearch to establish a separate
water utility division. This allows Seprotech to provide total water solutions
for its clients. Seprotech's core strategy is to generate consistent growing
revenues from the utility business and growth from the water technology systems
business. Management believes that this approach will provide for more
consistent financial results moving forward. Seprotech is targeting achieving
an even split between revenues from its water utility business and its water
treatment systems sales business over the next two years.
"The acquisition of Envirosearch is consistent with our core strategy for
growing Seprotech into an integrated water treatment solutions provider," said
Martin J. Hauschild, President & CEO. "This transaction is highly accretive and
Envirosearch is an excellent fit for our plans to build a substantial utility
business. There are large technical and regulatory barriers to entry in the
water utility business, which this acquisition allows us to quickly pass,"
concluded Hauschild.
Seprotech has a large installed base of systems and its utility division will be
seeking operating contracts from past as well as future clients. Management
believes that as the original systems manufacturer, Seprotech will be able to
provide a more cost-effective operating alternative through our utility business
compared to other suppliers.
Seprotech is a provider and operator of pre-engineered water and wastewater
treatment plants to the land development, industrial and military market place,
including membrane-based water treatment systems and the ROTORDISK(R) biological
wastewater treatment systems. The Envirosearch subsidiary of Seprotech is a
utility that operates services and optimizes water and wastewater treatment
plants.
The TSX Venture Exchange has neither approved nor disapproved of the information
contained herein. Some of the statements in this press release, including those
relating to the Company's strategies and other statements that are predictive in
nature, that depend upon or refer to future events or conditions, or that
include words such as "expects", "anticipates", "intends", "plans", "believes",
"estimates" or similar expressions, are forward-looking statements within the
meaning of securities laws. Forward-looking statements include, without
limitation, the information concerning possible or assumed future results of
operations of the Company. These statements are not historical facts but instead
represent only the Company's expectations, estimates and projections regarding
future events. The Company does not undertake any obligation to update or
release any revisions to these forward-looking statements to reflect events or
circumstances after the date of this presentation or to reflect the occurrence
of unanticipated events, except as required by law.
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