International Absorbents signs letter of intent to acquire Clean Green Packing Company.BELLINGHAM, Wash.--(BUSINESS WIRE)--June 25, 1996--International Absorbents 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 : IABSF), a leading manufacturer and marketer of absorbent absorbent /ab·sor·bent/ (-sor´bent) 1. able to take in, or suck up and incorporate. 2. a tissue structure involved in absorption. 3. a substance that absorbs or promotes absorption. products made from waste wood pulp wood pulp: see paper. , announced today that it has signed a letter of intent to acquire the business of Clean Green Packing Co. of Minnesota, a subsidiary of Environmental Technologies USA Inc. (NASDAQ: ENVR ENVR Environmental Requirements & Related Test Methods ). Terms of the transaction were not disclosed. Clean Green manufactures and markets degradable de·grad·a·ble adj. That can be chemically degraded: degradable plastic wastes. de·grad , reusable packing "peanuts." The company operated at breakeven breakeven 1. The level of output or sales necessary to cover fixed expenses. Companies in industries that have high fixed costs and, consequently, high breakevens, such as automobile and steel manufacturing, are likely to exhibit large fluctuations last year on sales of approximately $1.4 million. "Clean Green Packing has a 65 percent share of the loose-fill packaging market in the Minneapolis/St. Paul area and serves hundreds of customers nationwide," Darryl F. Jones, president 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 International Absorbents, stated. "Their plant is operating at 20 percent of capacity. With our existing distribution channels, and synergies with our own Absorbent(R) GP packaging material, we expect to substantially widen distribution and improve the sales and profits of the Clean Green product line, with minimal additional investment." Jones continued, "Clean Green produces starch-based packing peanuts that are cost-competitive with polystyrene peanuts. Polystyrene does not degrade and users are often on the defensive for using polystyrene. Clean Green's peanuts can be reused, and are degradable in water, virtually eliminating disposal costs. The estimated total U.S. market for loose-fill packaging materials exceeds $100 million." International Absorbents Inc. develops, manufactures and markets patented and proprietary, cellulose-based, cost-effective, highly absorbent products derived from waste wood pulp. These environmentally safe products outperform conventional products used in a wide variety of industrial and consumer applications, including oil and hazardous liquid spill cleanup and control, oil/water filtration, packing and commercial/retail animal bedding and litter. CONTACT: International Absorbents Inc. Darryl F. Jones, 206/223-1964 or 360/734-7415 or Porter, Le Vay & Rose, Inc. L.B. Stauffer, 212/564-4700 |
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