Watson General Acquires USTMAN Industries.
"The acquisition of USTMAN dramatically increases the company's market share in underground storage tank monitoring," said Ronald G. Crane, CEO of Watson General.
USTMAN and Watson General are ranked numbers one and two, respectively, in providing critical information to owners of underground storage tanks through remote tank monitoring and statistical inventory reconciliation services ("SIR") -- building a recurring revenue base from each underground storage tank being monitored.
SIR is one of the most cost-effective methods of detecting leaks in underground storage tanks and adds an important analytical service that is fully approved for purposes of compliance with EPA leak-detection regulations.
"We are excited about the opportunities to expand our business by combining our companies and thus enhancing the leadership, profitability and customer service excellence that have made us number one in the SIR industry," said Dan Cook, President of USTMAN, who has become President of the combined companies.
Watson General obtained $7,000,000 of financing for the acquisition and working capital from Sagaponack Partners, L.P., a private investment firm based in San Francisco and New York. Sagaponack provides capital to companies to expand their businesses through internal growth for consolidation in partnership with management. Watson General issued to Sagaponack a $7,000,000 secured note and shares of common stock comprising 40% of the outstanding shares of Watson General.
"Our new financial partnership provides the stable resources and expertise to meet the expected growth in our markets as the compliance deadline nears," added Mr. Crane.
As a result of the transaction, Watson General's board of directors has been reconstituted to include Ronald G. Crane, Dan R. Cook, Don Phillips and two representatives of Sagaponack, Barry Rosenstein and Marc Weisman.
CONTACT: Ron Crane, Chief Executive Officer, Watson General
Joe Christoffel, Chief Financial Officer, Watson General
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|Date:||May 23, 1997|
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