American Eco and Chempower agree to $50 million merger.AKRON, Ohio--(BUSINESS WIRE)--Sept. 11, 1996--Chempower Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CHEM CHEM Chemistry CHEM Chemical CHEM Chemist CHEM Chemistry Mission CHEM Centre des Hautes Études Militaires (French) CHEM Center for Healthcare Environmental Management CHEM Charge-Energy-Mass (spectrometer) ) and Houston based American Eco Corp. (NASDAQ:ECGOF/TSE:ECX ECX European Climate Exchange ECX E-Commerce Exchange ECX eCatalog XML ECX Extended Count Register ECX Electronically Controlled Telephone Exchange ECX Extrusion-Cast Explosive (fine-grain) ECX Experimental Concentration - Percent ) announced that they have entered into an agreement pursuant to which American Eco would acquire Chempower in a cash merger at a price of US $6.20 per share. Chempower has approximately 7.8 million outstanding shares. The merger agreement has been approved by the American Eco and Chempower boards of directors and is expected to be submitted to Chempower shareholders for their approval at a special meeting of shareholders anticipated to be held in November. The merger is also subject to arrangement of financing and requisite regulatory approvals. Chempower which is a major service contractor in the utility industry, was founded by Toomas J. Kukk, 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. and Ernest M. Rochester, vice-chairman. Various insiders hold approximately 54.6 percent of the issued common shares of Chempower. Both Kukk and Rochester will continue as the senior executives of Chempower after the merger. Michael E. McGinnis, president & CEO of American Eco stated, "The addition of Chempower is meaningful to American Eco in numerous ways. The profitable domination of their service markets in the Midwest and Northeast significantly enhances the company's financial position. The blending of their annuity type contracting relationships balances risk as it pertains to backlog. The addition of their management team becomes an important asset in our current acquisition strategy." Chempower is a manufacturing, construction and environmental services The various combinations of scientific, technical, and advisory activities (including modification processes, i.e., the influence of manmade and natural factors) required to acquire, produce, and supply information on the past, present, and future states of space, atmospheric, company for the power generation industry through subsidiaries in 14 eastern U.S. states from New Jersey to Indiana in the mid-west and Alabama in the south. Specific products and services include, insulation, sheetmetal fabrication fabrication (fab´rikā´sh  n),n the construction or making of a restoration. , mechanical construction and environmental services. In the year ended Dec. 31, 1995, Chempower had earnings of US $2.2 million on revenues of US $78.7 million, with current maintenance contracts and a manufacturing backorder position of approximately US $36 million. American Eco is a leading North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. provider of single source construction, project management, maintenance, demolition, dismantlement and environmental remediation Generally, remediation means providing a remedy, so environmental remediation deals with the removal of pollution or contaminants from environmental media such as soil, groundwater, sediment, or surface water for the general protection of human health and the environment or from a services in the refining, petrochemical, government, commercial, manufacturing, and utility industries. CONTACT: Chempower Inc., Akron Toomas J. Kukk, 330/896-4202 |
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