Perma-Fix Announces Agreement To Acquire Two Industrial Waste Treatment Companies
ATLANTA, March 4 /PRNewswire-FirstCall/ -- Perma-Fix Environmental Services, Inc. (Nasdaq: PESI; BSE) (Germany: PES.BE) today announced the signing of a letter of intent to acquire substantially all of the assets of USL Environmental Services, Inc. d/b/a A&A Environmental ("A&A") of Baltimore, Md. and US Liquids of Pennsylvania, Inc. d/b/a EMAX ("EMAX") of Pittsburgh, Pa., both of which are wholly owned subsidiaries of US Liquids Inc. ("USL"). Perma-Fix will pay in cash, at closing, $3.2 million for the assets of A&A and EMAX, subject to a net working capital adjustment. The closing is subject to the completion of due diligence, the execution of a definitive agreement, approval by the Board of Directors of PESI and certain other conditions, which is expected to be finalized during the first quarter of 2004. The target companies had unaudited combined revenues of approximately $15.0 million in 2003.
A&A is a full line provider of environmental, marine and industrial maintenance services. A&A has been in business for over 45 years and continues to adapt to meet the specialized needs of today's environmental and plant managers. A&A offers expert environmental services such as 24 hour emergency response, vacuum services, hazardous and non-hazardous waste disposal, ship and bilge cleaning and other remediation services. EMAX, through its field and industrial services group, provides a variety of environmental services such as transportation of drums and bulk loads, tank cleaning, industrial maintenance, dewatering, drum management and chemical packaging. EMAX also has a wastewater treatment group, which provides for the treatment of non-hazardous wastewaters such as leachates, oily waters, industrial process waters, off-spec products and grease trap waste.
Commenting on the acquisition, Dr. Louis F. Centofanti, Chairman and CEO, stated, "These acquisitions represent an excellent opportunity to expand our industrial segment's presence in the field of environmental maintenance, which has been one of our most consistent and profitable markets, with the majority of such work currently based out of our Ft. Lauderdale facility. In addition to maintenance services, these facilities are also focused heavily on industrial wastewater, which will integrate well into our existing wastewater operations. These areas have been targeted for growth and will complement our reorganization plan. Moreover, we anticipate these acquisitions will be profitable in the second quarter of 2004."
Perma-Fix Environmental Services, Inc. is a national environmental services company, providing unique mixed waste and industrial waste management services. The industrial segment provides hazardous and non-hazardous waste treatment services for a diverse group of customers including Fortune 500 companies, numerous federal, state and local agencies and thousands of smaller clients. The nuclear segment provides radioactive and mixed waste treatment services to hospitals, research laboratories and institutions, numerous federal agencies including the Departments of Energy and Defense and nuclear utilities. The Company operates nine major waste treatment facilities across the country.
This press release contains "forward-looking statements" which are based largely on the Company's expectations and are subject to various business risks and uncertainties, certain of which are beyond the Company's control. Forward-looking statements include, but are not limited to, the opportunity to expand our industrial segment's presence in the field of environmental maintenance, the integration into our existing facilities, complementing our reorganization plan and these acquired assets being profitable in the second quarter of 2004. These forward-looking statements are intended to qualify for the safe harbors from liability established by the Private Securities Litigation Reform Act of 1995. While the Company believes the expectations reflected in this news release are reasonable, it can give no assurance such expectations will prove to be correct. There are a variety of factors which could cause future outcomes to differ materially from those described in this release, including without limitation, the Company's inability to close this assumed acquisition in the manner and terms as described, future economic conditions, industry conditions, competitive pressures, or the ability of the Company to achieve the anticipated economies of scale, profitability and growth. The Company makes no commitment to disclose any revisions to forward- looking statements, or any facts, events or circumstances after the date hereof that bear upon forward-looking statements.
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SOURCE Perma-Fix Environmental Services, Inc.
Released March 4, 2004