Watson General Acquires USTMAN Industries.IRVINE, Calif.--(BUSINESS WIRE)--May 23, 1997--Yesterday, Watson General Corporation (NASDAQ NASDAQin 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 : WGEN) acquired all of the outstanding capital stock of USTMAN Industries, Inc., a subsidiary of NDE NDE Nondestructive Examination NDE No Diplomatic Exchange (US Department of State) NDE Near Death Experience NDE Nondestructive Evaluation (ultrasound material evaluation) Environmental Corporation. The purchase price was $5.25 million in cash and a $500,000 12-month note. "The acquisition of USTMAN dramatically increases the company's market share in underground storage tank An Underground Storage Tank (UST), in United States environmental law, is a tank and any underground piping connected to the tank that has at least 10 percent of its combined volume underground. monitoring," said Ronald G. Crane, 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 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 EPA eicosapentaenoic acid. EPA abbr. eicosapentaenoic acid EPA, n.pr See acid, eicosapentaenoic. EPA, n. 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 San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden and New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of . 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 (714) 727-4020 |
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