LandStar Inc.: Acquisition of PolyTek, Rubber Recovery, New Management Members
8 January 2001
LandStar Inc.: Acquisition of PolyTek, Rubber Recovery, New Management Members
PHOENIX--Jan. 8, 2001--LandStar Inc. (OTCBB:LDSR) (www.ldsr.com) is pleased to announce that effective today the Company has acquired substantially all of the outstanding shares of PolyTek Rubber & Recycling, Inc., which includes all PolyTek subsidiaries.PolyTek is a Delaware corporation with operations established in 1996, that owns and operates rubber recycling facilities in Queen Creek, AZ, Bristow, OK, Chambersberg, PA and Flat Rock, MI. The Company has consolidated revenues of approximately $17M (USD) and is the largest producer of crumb rubber in the world. The Company plans to retrofit the PolyTek facilities to enhance production, quality control and product mix with a $5M (USD) capital expenditure program in early 2001.
The Company further advises that it has entered into an agreement to acquire the crumb rubber assets of Rubber Recovery, Ltd. (a Texas Limited Partnership) for a price of $250K (USD). Rubber Recovery, Ltd. has negotiated a large volume, long-term tire disposal contract with Bridgestone/Firestone, Inc. and a long-term crumb rubber supply contract with a major consumer products manufacturer. This supply contract is being renegotiated by the Company to accommodate the supply capacities available through the PolyTek acquisition and retrofit. This acquisition includes assumption of a transportation contract with Bridgestone/Firestone, Inc. The collective value of these contracts is approximately $48M (USD).
The Company has completed the formation of its senior management team with the hiring of Mr. Michael Jones, CPA as Vice President and CFO. Mr. Jones has an extensive career providing senior financial services and strategic planning services to public companies. Mr. Jones will be responsible for financial reporting, financial systems development and management and for cost and management accounting. With this appointment, Mr. Michael Pinch will step down as Interim CFO and will continue serving the Company in a controllorship function. Mr. Steve Martin has joined the Company as Vice President Finance. Mr. Martin is a seasoned financial executive with many years of successful participation in numerous public offerings, private funding initiatives, turn-arounds, mergers and acquisitions and corporate financial structuring. Mr. Martin will focus on corporate finance and investment banking.
The Company is now in a revenue generating position and expects to grow the business through aggressive sales management and additional acquisitions.
On behalf of the Board of Directors D.E. Fimrite, President
No Stock Exchange or Securities Commission has approved nor disapproved the statements in this release. Any statements that are not strictly historical are "forward-looking statements" made pursuant to the "safe harbour" provisions of the Private Securities Litigation Reform Act of 1995 and within the meaning of section 27A of the Securities Act of 1933 and section 21E of the Securities Exchange Act of 1934. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. These statements are subject to a number of risks and uncertainties that may affect actual events or results materially. All such forward-looking statements, whether written or oral, and whether made by or on behalf of the company are expressly qualified by these cautionary statements. In addition, the Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.