Date: February 26, 2007
Source: Pure Earth, Inc.
Pure Earth, Inc. Announces Acquisition of Major NJ Waste Processing Complex. Purchase Includes Important Permit Portfolio & $4.5 Million Investment Which Positions the Company for Significant Revenues & Earnings Increases.
Today, Pure Earth Inc. (Pink Sheets: PREA.PK) announced that it has entered into a definitive agreement to acquire three companies in the Environmental Recycling Business located on 32 acres in Vineland, NJ. Two of the companies, Casie Oil Ecology and Salvage Inc., (Casie) and Mid Atlantic Refining Technology (MART) have a vast portfolio of treatment and recycling permits which will provide a cornerstone to Pure Earth's plan to service the Northeastern part of the United States. These companies process and recycle oils, solvents, refinery wastes, contaminated soils and filter cakes in solid and liquid form. Collectively the companies have estimated 2006 revenues in excess of $22 million with over 300 customers in 10 states. They employee 120 people and began operations in 1976.
Pure Earth Inc. is also acquiring a third company, Rezultz, Inc., which owns all 32 acres plus a vast array of recycling equipment that Pure Earth plans to put into service processing and recycling various waste products in a number of other locations. Although the terms of the agreement were not disclosed, PEI will inject $4,500,000 in cash to upgrade and expand the operations of the collective companies including providing the working capital necessary to offer customers the highest possible quality service in the marketplace.
Pure Earth C.E.O. Mark Alsentzer stated, "The merging of these companies into Pure Earth's array of complementary operations places us in a position to vastly expand our services to existing customers as well as new customers. These companies possess over 40 permits, many of which are unique and unavailable in today's market." Mr. Alsentzer continued, "The majority shareholder of these companies, Gregory Call, will continue to serve as CEO of Casie and MART and join the board of Pure Earth Inc. Mr. Call's vision and operating skills will be of great value to PEI in the future. He has built quite a business in 30 years."
Gregory Call, CEO of MART and Casie stated, "The merger of our companies with Pure Earth, Inc. will provide us tremendous synergies in addition to the necessary capital to grow our operations. I'm very excited to be part of the Pure Earth team of experienced management which has a track record of building successful environmental companies."
The environmental treatment and recycling business in the NY/NJ market has grown substantially in the last several years due to the vast amount of redevelopment of previously contaminated industrial property, rebuilding of the infrastructure on New York City and New Jersey and wastes from the expansion of refinery services. Casie and Mart are the largest and most dynamic multi purpose recycling operation located near this market. Growth in this region is expected to continue in the foreseeable future.
The merger is expected to close upon proper notification and approval of the Regulatory agencies which is estimated at 30 days or less.
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