Enviro-Serv, Inc. Secures Binding LOI for Acquisition of Termite Fumigation Company; Deal to Close Before End of August 2014
April 10 2014 - 7:00AM
Marketwired
Enviro-Serv, Inc. Secures Binding LOI for Acquisition of Termite
Fumigation Company; Deal to Close Before End of August 2014
TAMPA, FL--(Marketwired - Apr 10, 2014) - Enviro-Serv, Inc.
(OTC: EVSV), which targets highly profitable small service
companies in the commercial and residential property maintenance
industry, is pleased to announce that the LOI announced earlier
this week, has been effected as Binding on both parties pending Due
Diligence (DD), which has commenced and is to be completed by May
7, 2014.
The target acquisition reported $518k in sales in 2011, $693k in
2012 and $950k in 2013, with $1.1m projected in 2014. As well,
current management will stay on board to ensure a seamless
transition with solid potential for sustainable growth.
"This is truly exciting," states EVSV CEO Chris Trina. "Here we
have a company doing nearly $1m in revenues last year with
projections for incremental increase in profits for the foreseeable
future. The company has doubled its revenues in a mere two year
period which is what attracted me to this deal in the first
place."
"The deal includes $100,000 of materials and equipment; even
though the total purchase price is $850,000 in my opinion we are
truly getting the business for the $600,000 cash down payment. The
balance will take care of itself over time if we decide not to
prepay it. By no means am I stealing this company but it's one
heckuva fair deal that's for sure. I am not sure if our
shareholder's or investor's realize but over $500 million is spent
annually to control and repair damages done by termites in Florida
alone."
He adds, "The acquisition marks a significant benchmark in the
company's overall growth and I'm thrilled to have worked tirelessly
on behalf of shareholders to bring us to this point. I will
continue to work diligently to build shareholder value."
In addition to both parties amending the LOI as binding, both
parties have agreed to work aggressively to expedite the deal
toward mutual benefit. Once DD is satisfied, EVSV will remit a
non-refundable deposit on the deal of $42,500 toward the total
purchase price of $850k. The $42,500 is already escrowed and
available for Enviro-Serv in their bank account. The deal is
expected to close on or before August 31, 2014 with the remittance
of an additional $557,500 by Enviro-Serv to the current owner.
The remaining $250,000 balance will be carried in the form of a
60-month promissory note with an APR of 5%. EVSV CEO, Chris Trina
will work aggressively to expedite closing in order to immediately
capture additional revenues for the company during what has already
become another industrious termite season in the SouthEast United
States, particularly EVSV's region of focus in the Tampa Bay Area
of Florida.
As well, Enviro-Serv has entered into a confidential agreement
with a New York Institutional Investing group to raise capital via
a soon to be filed Regulation A offering of up to $5,000,000. The
entity has proven success in the area of fundraising for EVSV with
more than $200,000 raised for the company's expansion since last
Fall.
Trina comments, "I have been highly selective in securing ideal,
non-toxic financing to grow our company toward an increase in
shareholder value, and am very pleased with our private investors.
In addition to showing genuine enthusiasm for the upcoming
acquisition, all involved are putting their money where their mouth
is, myself included, to make this happen."
Trina has used his personal stock holdings in EVSV to
collateralize funding necessary for the acquisition deal's down
payment and has committed to fund up to an additional $100k of
personal money in the event of a shortfall to ensure the deal
closes in a timely manner.
The company looks forward to issuing further updates as it
continues to achieve benchmarks toward long-term success for
Enviro-Serv and its shareholders.
Enviro-Serv, Inc. (OTC: EVSV) is a Tampa based corporation
specializing in providing property maintenance services in
geographically concentrated warm climate states. Through an
aggressive acquisition strategy, the Company is building a
portfolio of highly profitable enterprises that offer year round
services such as pest control management, lawn and landscaping
care, pool maintenance, air conditioning/refrigeration installation
and repairs and a host of additional onsite maintenance offerings.
Please visit our websites at www.enviro-serv.com and
www.xterminateinc.com to learn more.
Forward-Looking Statements - This press release contains
"forward-looking statements" within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended and such
forward-looking statements are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
Such statements are subject to risks and uncertainties that could
cause future results to differ materially from the forward-looking
statements. You should consider these factors in evaluating the
statements herein, and not rely solely on such statements. The
forward-looking statements in this release are made as of the date
hereof and Enviro-Serv, Inc. undertakes no obligation to update
such statements.
CONTACT: CHRIS TRINA CEO Enviro-Serv, Inc. 813-975-7177
Enviro Serv (PK) (USOTC:EVSV)
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