Recently the board of directors of General Environmental Management Inc. decided to shift the company’s business focus from hazardous waste field services to the higher-margin and faster-growing water treatment and waste-to-energy markets, while also reducing the company’s debt.
General Environmental believes it has one of the best managed and operated field services businesses in the country. This business has handled waste streams from some of the biggest companies in the country. The company is now focused on how to maximize the value of that business while it builds its high margin water treatment business and explores opportunities in the waste-to-energy technology market.
The company is making rapid strides toward transforming their business. A few weeks ago, California-based General Environmental announced that it had signed a binding letter of intent to acquire Santa Clara Waste Water. The deal is expected to close on or before November 1, 2009.
The changes at General Environmental do not stop with that deal. In addition, the company is actively pursuing two other complimentary water treatment businesses that will give them even greater capacity to scale revenues. Finally, the management team has identified two outstanding waste-to-energy technologies that can turn today’s waste products into clean and efficient energy.
The CEO of General Environmental Management, Tim Koziol, summed up the company’s strategy nicely, “Our strategy is very simple. First, maximize the value of our base field services business unit. Next, we will continue to reduce debt and improve the balance sheet. Finally, we will focus our attention on acquiring, licensing or partnering with water treatment and waste-to-energy companies to accelerate high margin revenue.”
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