ENVIRONMENTAL TECHNOLOGIES USA, INC. EXECUTES LETTER OF INTENT TO ACQUIRE BRAXTON INDUSTRIES, INC.
MINNEAPOLIS, Jan. 26 /PRNewswire/ -- Environmental Technologies USA, Inc. announced today that it has executed a letter of intent to acquire Oftendahl Enterprises, Inc., dba Braxton Industries, of Bovey, Minn. Braxton Industries, the nation's largest recycler of railroad ties with 1992 sales of approximately $940,000, pioneered the recycling and reprocessing of used railroad ties for use as an alternative industrial fuel. The letter of intent to acquire Braxton Industries is subject to final negotiation of a management contract with Gordon A. Oftendahl, Braxton's owner and president, as well as final documentation and shareholder approval. In 1990, Oftendahl acquired the assets of Braxton Industries through a reorganization under Chapter 11 of the bankruptcy code. Braxton was profitable during 1991, and earned more than $120,000 in net income and $170,000 in cash flow during the year ended Dec. 31, 1992. "Braxton Industries, the leader and innovator in its field, is an outstanding opportunity with excellent growth prospects," stated Robin Young, CEO of Environmental Technologies. "Braxton's business clearly meets ETI's corporate mission objectives and the company represents an immediate contribution of sales and net income." Environmental Technologies USA, Inc. manufactures, markets, distributes, and develops biodegradable and recycled substitutes for virgin plastic polymers. One ETI subsidiary, Clean Green Packing Company of Minnesota, manufactures and distributes biodegradable starch-based foam loose-fill packing material. In December 1992, ETI announced its intention to merge the operations of Evergreen Solutions, Inc. with its Clean Green Packing Company subsidiary. Another subsidiary, United Recycling, Inc. converts post-consumer carpeting into polymer resin suitable for re-manufacturing. -0- 1/26/93 /CONTACT: Robin Young, CEO of Environmental Technologies, 612-339-3766; or Tom de Petra of de Petra & Associates, Inc., 612-338-7630, for Environmental Technologies/ (ENVR)
CO: Environmental Technologies USA, Inc. ST: Minnesota IN: SU: TNM
AL -- MN020 -- 9258 01/26/93 16:22 EST
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|Date:||Jan 26, 1993|
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