General Environmental Management, Inc. announced today after the closing bell that on February 26, 2010, it completed the sale of its Western Region Field Service business and its Rancho Cordova Transfer, Storage, and Disposal Facility to Luntz Acquisition (Delaware) LLC. As previously announced, the sale was approved at a Special Meeting of Stockholders held on February 19, 2010.
Tim Koziol, CEO of GEM, commented, “This sale was an important part of our transition strategy into the wastewater treatment services and waste-to-energy markets and will allow GEM to build on its recent acquisition of Santa Clara Waste Water Company, a wastewater treatment business.
Koziol continued, “We believe there is a large and growing opportunity in wastewater treatment, both nationally and globally. We plan to use our core competencies to develop the business through professional sales and marketing while standardizing operations for regional, national and global growth.”
“Our focus in wastewater treatment services and waste to energy will be in areas that are typically overlooked with new and innovative ideas,” stated Bill Mitzel, President and COO of GEM. “The two technologies have mostly been treated separately, but we are looking at ways to combine both for a greener approach.”
Brett Clark, CFO of GEM, added, “The transaction was able to reduce our outstanding obligations to our senior lender by $9.1 million. The remaining obligation of approximately $1.2 million will be paid down when certain assets and deposits are realized over the next nine months. The senior debt outstanding of $5.6 million related to the mobile treatment business will be offset by a note receivable from the buyers of that business. This note receivable will be paid when the mobile treatment business buyers refinance their debt, which is expected later this year. In total, the senior lender liability will have been reduced by over $15.9 million.”
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