Seprotech Closes Acquisition of Water Operations Business and Establishes Water Utility Division
29 January 2009 - 1:28AM
Marketwired
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� 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.
Contacts: Seprotech Systems Inc. Mr. Robert J. Searle, CFO
Investor Relations 613-523-1641 613-731-0851 (FAX)
rsearle@seprotech.com
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