GreenMan Technologies Acquires Two Tire-Recycling Companies
30 March 1999
GreenMan Technologies Acquires Two Tire-Recycling Companies
LYNNFIELD, Mass.--March 30, 1999--enhanced margins at our Minnesota facility."
Robert H. ("Bob") Davis, CEO
GreenMan Technologies Inc.
GreenMan Technologies Inc. (BSE:GMY)(BSE:GMYW) announced today that it has acquired two independent tire-recycling companies: Hiawatha Tire Recycling located in Winona, Minnesota, and Frederickson Tire Recycling located in Northfield, Minnesota. Financial terms of the transactions were not disclosed.
"The acquisitions of Hiawatha and Frederickson will result in numerous benefits for GreenMan Technologies," said Robert H. Davis, president and chief executive officer. "First, we are adding approximately 200 customers who now will be depending on GreenMan to solve their scrap-tire recycling needs. Second, we are fortifying our strong presence in Minnesota as well as expanding into Iowa and western Wisconsin markets. Additionally, we expect these acquisitions will result in increased revenue and enhanced margins, which will add to our bottom-line profit going forward.
"These latest acquisitions underscore our corporate strategy to consolidate the scrap-tire recycling industry in order to become the leader in this industry. Our core business, of course, is driven by collecting current-generation scrap tires from retail stores and other sources on a continuing basis," stated Mark Maust, vice president and general manager of upper midwest operations. "We are paid to take tires away. In addition, we then process these tires and are able to resell their components for use as an alternative fuel source. Thus, it is critically important that we be able to source as many scrap tires as we can.
"These acquisitions, then, are strategic, inasmuch as they serve our strategy to gain control of as many scrap tires as possible in the markets we serve," said Davis. "We look forward to making additional strategic acquisitions, in an effort to maximize shareholder value, as long as it is the best interest of GreenMan Technologies."
Already the second-largest scrap tire-recycler in the U.S., GreenMan Technologies intends to become the leading company in the industry.
"Safe Harbor" Statement: Under the Private Security Litigation Reform Act
With the exception of the historical information contained in this release, the matters described herein contain "forward-looking" statements that involve risk and uncertainties which may individually or collectively impact the matters herein described, including but not limited to product acceptance, economic, competitive, governmental, results of litigation, technological and/or other factors outside the control of the Company, which are detailed from time to time in the Company's SEC reports, including the report on Form 10-Q for the reporting period ended December 31, 1998. The Company disclaims any intent or obligation to update these forward-looking statements.