Puroflow Announces Acquisition of Quality Control Cleaning
8 February 1999
Puroflow Announces Acquisition of Quality Control Cleaning, a Major Cleaner of Precision Parts For IndustryVAN NUYS, Calif., Feb. 8 -- Puroflow Inc. (OTC Bulletin Board: PURO) today announced that it has purchased 100 percent of Quality Control Cleaning, City of Commerce, Ca., a major provider of cleaning services of precision parts at precise specifications for numerous industries. Quality Control Cleaning, which began business in 1976, provides cleaning, sterilizing, testing and assembly of components and parts for companies nationwide in commercial aviation, aerospace, and the medical, pharmaceutical and petrochemical industries. Its annual sales average more than $500,000. Puroflow purchased Quality Control Cleaning for $500,000 in cash from its working capital funds, acquiring all the issued and outstanding common stock of the private corporation. "This purchase will also allow Puroflow to significantly expand the cleaning services it provides to industry at its Van Nuys facility," said Michael Figoff, President and CEO. Figoff said a manager of operations would be transferred from Puroflow to Quality Control Cleaning to oversee the operation of the new subsidiary. Puroflow will absorb all financial and administrative functions previously performed by Quality Control Cleaning. All ten employees of Quality Control Cleaning will be retained. We are confident that this purchase will provide significant value for our shareholders," Figoff said. Figoff also announced the termination of litigation with an award of damages against Memtec America Corporation in a case tried in Baltimore, Maryland. He said details of the award would be available in early March at the conclusion of the 30 day appeal period. Puroflow, Inc., with manufacturing facilities in Van Nuys, is a leading supplier worldwide of high-performance filters, which are able to withstand severe environmental conditions, for the defense, space, and commercial aircraft industries and for the automobile airbag industry.