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Message: Closes Acquisition of Water Op Business and Establishes Water Utility Div.
| January 28, 2009 |
| Seprotech Closes Acquisition of Water Operations Business and Establishes Water Utility Division |
| OTTAWA, ONTARIO--(Marketwire - Jan. 28, 2009) - Seprotech Systems Inc. (TSX VENTURE:SET) ("Seprotech") is pleased to announce that it has closed the purchase of Envirosearch Operations Incorporated ("Envirosearch"), a private company located in Milton, Ontario. Envirosearch has historic annual revenues (unaudited) of approximately $2,000,000 and is an operator of water and wastewater treatment plants in Ontario. The purchase price for Envirosearch consists of 400,000 common shares of Seprotech and $500,000 payable over approximately five years. In addition, the agreement includes a provision for the founder of Envirosearch to be paid a commission for improved performance of Envirosearch's historical business. On October 21, 2008, Seprotech announced the establishment of a division focused on operating and servicing water and wastewater treatment systems. Seprotech is merging this division with the business of Envirosearch to establish a separate water utility division. This allows Seprotech to provide total water solutions for its clients. Seprotech's core strategy is to generate consistent growing revenues from the utility business and growth from the water technology systems business. Management believes that this approach will provide for more consistent financial results moving forward. Seprotech is targeting achieving an even split between revenues from its water utility business and its water treatment systems sales business over the next two years. "The acquisition of Envirosearch is consistent with our core strategy for growing Seprotech into an integrated water treatment solutions provider," said Martin J. Hauschild, President & CEO. "This transaction is highly accretive and Envirosearch is an excellent fit for our plans to build a substantial utility business. There are large technical and regulatory barriers to entry in the water utility business, which this acquisition allows us to quickly pass," concluded Hauschild. Seprotech has a large installed base of systems and its utility division will be seeking operating contracts from past as well as future clients. Management believes that as the original systems manufacturer, Seprotech will be able to provide a more cost-effective operating alternative through our utility business compared to other suppliers. Seprotech is a provider and operator of pre-engineered water and wastewater treatment plants to the land development, industrial and military market place, including membrane-based water treatment systems and the ROTORDISK(R) biological wastewater treatment systems. The Envirosearch subsidiary of Seprotech is a utility that operates services and optimizes water and wastewater treatment plants. |
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