QSGI Acquires Certain Assets of The Gasket Guy, Inc.; Acquisition Expands QSGI's Service Offerings to Include Energy Saving T...
September 21 2011 - 9:33AM
QSGI INC. (Pink Sheets:QSGI) today announced that
its wholly owned subsidiary, QSGI Green, Inc., has acquired certain
assets of The Gasket Guy, Inc. and its related operations. The
acquisition will represent 100% of QSGI Green's operations and
financial results going forward. The Gasket Guy, Inc. is a leading
provider of replacement gaskets for refrigeration units that
provide significant energy savings for restaurants, hotels,
supermarkets, fast-food chains, and other businesses nationwide.
QSGI Green acquired The Gasket Guy, Inc. through an asset purchase
agreement for the company's operating assets. The agreement
consists of a subordinated seller's note not to exceed $412,500
maturing no later than December 5, 2016 and bears interest at a
rate of 7.5% annually, an agreement by QSGI to collect
approximately $725,000 of The Gasket Guy's accounts receivables to
be used to satisfy existing bank debt for which the assets serve as
collateral, as well as an earn-out based on QSGI Green achieving
profit milestones over the next five years.
The Gasket Guy, Inc. generated revenues in excess of $2.5
million and achieved a fifteen percent net profit margin over the
trailing twelve months ended June 30, 2011 based on unaudited
financials. The Gasket Guy has added more than 10,000 customers and
has achieved over 50 % compound annual growth rate over the past 3
years.
The Gasket Guy, Inc. manufactures replacement refrigeration
gaskets to fit any commercial refrigeration unit including
refrigerators, coolers, and walk-in units. Additionally they have a
full line of refrigeration replacement parts including strip
curtains, night shades, door handles and hinges. Leaking gaskets
waste energy and cause excessive wear on refrigeration equipment.
By providing factory-new replacement gaskets, The Gasket Guy helps
customers save energy, money and the environment. While fitted
gaskets generate their own return on investment (ROI), energy
companies in many regions provide rebates and incentives programs
to encourage customers to invest in energy saving
improvements. The Gasket Guy has successfully worked with
numerous utility companies under these incentive programs to reduce
energy costs.
The Gasket Guy operates four units: The Gasket Guy
(www.TheGasketGuy.com), Green Energy Masters
(www.GreenEnergyMasters.com), Top Refrigeration Parts
(www.Top-Refrigeration-Parts.com), and 1-877-Gaskets
(www.1877Gaskets.com). These segments provide a variety of
services including direct installation services, manufacturer
supply parts to other refrigeration companies, refrigeration parts
supplied by mail, and e-commerce.
Marc Sherman, Chairman and CEO of QSGI Inc., explained, "Our
acquisition of The Gasket Guy, Inc. adds a new element to our
service offerings and represents a potential growth
opportunity. Traditionally, our business has been focused on
the re-use and recycling of technology. With the addition of
this business, we can now offer customers the ability to reduce
energy consumption as well. The Gasket Guy has a very
compelling value proposition for customers. First, by
providing new replacement gaskets, we can show an immediate and
measurable ROI in the form of energy savings for
customers. Second, many of the leading energy companies have
begun to provide rebates and incentives to encourage customers to
utilize our services. We welcome the management team of The
Gasket Guy, including Moshe Schneider, and Avner Harel, who will
run the sales and operations of QSGI Green, and will play an
important role in the growth of QSGI Green in the years
ahead."
Mr. Sherman concluded, "The traditional waste hierarchy is most
often illustrated as a triangle whose three sides are comprised of
Reduce, ReUse, and Recycle. QSGI Green, Inc. helps customers
reduce their use of electricity and the fossil fuels that generate
it. KruseCom enables customers to reuse or remarket their surplus
technology equipment, while JoesScrap.com provides a way for
customers to recycle their surplus electronic gear at the
end-of-lifecycle. With this transaction, we now provide all
three key elements of the environmental triangle, and plan to build
in all three of these segments"
About QSGI, Inc.
QSGI, Inc. specializes in green technology, technology asset
management, new product sales, used product remarketing, enterprise
maintenance, spare parts sales, end of lifecycle management, hard
drive destruction and data erasure, fee-based e-waste disposal, and
green recycling. Providing a spectrum of technology products
and services, QSGI creates a marketplace that enables
environmentally friendly I.T. transactions between Fortune 500
corporations, original equipment manufacturers, leasing companies,
privately held businesses, and even individual consumers.
QSGI's mission is to continue developing new services that add
value for its customers and shareholders.
Forward-Looking Statements
Statements in this release that are not strictly historical in
nature constitute "forward-looking statements." Such statements may
include, without limitation, statements with respect to the
Company's plans, objectives, expectations and intentions, and other
statements identified by words such as "may," "could," "would,"
"should," "believes," "expects," "anticipates," "estimates,"
"intends," "plans," or similar expressions. Such forward-looking
statements involve known and unknown risks, uncertainties, and
other factors that may cause the actual results of QSGI to be
materially different from historical results or from any results
expressed or implied by such forward-looking statements. These
factors include, but are not limited to, risks and uncertainties
related to the progress, timing, cost, and results of mergers,
acquisitions, and operations; competition from other technology
companies; and the additional risks discussed in filings with the
Securities and Exchange Commission. All forward-looking statements
are qualified in their entirety by this cautionary statement, and
QSGI undertakes no obligation to revise or update this news release
to reflect events or circumstances after the date hereof. The
company names used in this statement are for identification
purposes only. All trademarks and registered trademarks are the
property of their respective owners.
CONTACT: David Meynarez
CFO
QSGI, Inc.
561-629-5713
David.Meynarez@QSGIInc.com