Admiral Sanitation Inc. Acquires Donovan Chemicals.ETOBICOKE, Ontario--(BUSINESS WIRE)--Oct. 3, 1997--Admiral Sanitation sanitation: see plumbing; sanitary science. I(Alberta Stock Exchange Alberta Stock Exchange See Canadian Venture Exchange (CDNX). ADS. ) Mr. Edward A. Bayer, Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Admiral ADMIRAL, officer. In some countries is the commander in chief of the naval forces. This office does not exist in the United States. Sanitation Inc. ("Admiral") today announced that Admiral has acquired the assets of the laundry and warewash business of T. Donovan & Son Ltd. (Donovan), located in Saint John, New Brunswick Saint John[3] is the largest city in the province of New Brunswick and the oldest incorporated city in Canada. In 2006 the city proper had a population of 68,043. The population of the Census Metropolitan Area is 122,389. . Under the terms of the agreement, the total consideration was $800,000, with Admiral making a $400,000 cash downpayment, and the balance to be paid over a 5 year period. The business will continue under the Donovan name, now as a division of Admiral. Resulting from the acquisition, the two key managers of Donovan critical to the development of the business are joining Admiral, and have indicated their longer term commitment by investing in Admiral Sanitation Inc. Donovan developed its solid reputation for quality and service since 1950. Over those many years the company came to understand the needs of its customers very well, being rewarded with a commanding market share in institutional, food service, laundry and specialty products. Mr. Bayer stated: "Once again, Admiral management identified and acquired a company with a synergistic synergistic /syn·er·gis·tic/ (sin?er-jis´tik) 1. acting together. 2. enhancing the effect of another force or agent. syn·er·gis·tic adj. 1. fit. First, it brings Admiral into the lucrative laundry business. Second, Donovan is focussed on the Atlantic provinces Atlantic Provinces, term used since 1949 to designate the Canadian provinces of Newfoundland and Labrador, Nova Scotia, New Brunswick, and Prince Edward Island. . While Admiral has built an existing customer base there, the new Donovan division provides Admiral with immediate revenue growth from a broader regional base, and gives Admiral a dedicated east coast sales team and distribution warehouse to better serve all customers in that market. Third, Donovan's product line was, in the past, generally manufactured externally by contract. This manufacturing now moves to Admiral's Toronto facility, contributing greatly to the efficiencies within our plant. And fourth, for the previous reasons, Admiral's revenues and profitability will be positively impacted. Management expects the Donovan acquisition, in addition to our acquisition of Orbit Chemical Specialties this past July, to provide increased revenue growth and profitability in our next fiscal year. We are particularly excited by the prospects for Donovan as Admiral can provide the management and financial support, manufacturing expertise, systems infrastructure and marketing skills which will allow Donovan to achieve new levels of growth in 1998 and beyond." Admiral is a manufacturer and supplier of over 200 environmentally-friendly sanitation and maintenance products targeting commercial applications. Food Service: food and beverage F&B is a common abbreviation in the United States and Commonwealth countries, including Hong Kong. F&B is typically the widely accepted abbreviation for "Food and Beverage," which is the sector/industry that specializes in the conceptualization, the making of, and delivery of foods. processing plants, and supermarkets. Maintenance: including products directed to the treatment of water primarily in boiler, cooling tower and waste-water applications as well as a line of specialized lubricants lubricants preparations for the lubrication of passages to reduce frictional injury, e.g. oily preparations, including petroleum jelly, lanolin or water-soluble preparations such as methyl cellulose. and engineering-oriented products. -0- The Alberta Stock Exchange has neither approved nor disapproved of the information contained herein. CONTACT: Admiral Sanitation Inc. Edward A. Bayer, 416/ 213-1062 or Bond Strategic Communications Herb Bond, 905/ 945-7221 Email: jhbond@bondcreates.com |
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