Innovative Composites Completes Eleison Acquisition
November 02 2011 - 7:00AM
PR Newswire (Canada)
Acquisition reduces costs, expands IP portfolio and boosts revenue
TORONTO, Nov. 2, 2011 /CNW/ - Innovative Composites International
Inc. ("ICI" the "Company"), announced today that it has completed
the previously announced purchase of the assets of Eleison
Composites LLC ("Eleison"), a manufacturer of fiber reinforced
thermoplastic skin material which is utilized in all ICI products.
The Eleison acquisition allows ICI to control supply of a strategic
raw material that is used in all its products. In addition, patents
formally held by Eleison allow for the utilization of recycled
Polyethylene Terephthalate ("PET") and other recycled polymers, in
the manufacture of thermoplastic skin and core materials. According
to the U.S. Government Accountability Office, approximately 1
million tons of PET water and soft drink bottles end up in
landfills annually, making it a readily accessible and low cost raw
material for ICI products. The Eleison equipment will be integrated
in the ICI production lines in the Sault St. Marie and South
Carolina facilities and will result in a significant reduction of
costs for all ICI products. Eleison was on target to record
approximately US$2 million in annual sales for 2011 and ICI expects
the acquisition to boost revenue as it is continuing to ship
products to former Eleison customers. "This acquisition not only
allows us to reduce costs, but also ensures that we stay ahead of
any potential competition. ICI now has the IP and technology to be
the lowest cost producer of the fiber reinforced thermoplastic skin
and has eliminated our dependency on a raw material supplier," said
ICI President and CEO Terry Ball. "Vertical integration has always
been an integral part of our strategy and the ability to utilize
recycled plastics in the manufacturing process should significantly
strengthen ICI's position in all our target markets." About
Innovative Composites International Inc. Headquartered in Toronto,
Canada Innovative Composite International is a high tech
engineering and manufacturing company that is successfully
commercializing a patent protected line of state-of-the-art
composite products targeted at the multi-billion dollar
transportation and affordable housing markets. Led by a team of
commercialization experts ICI has adopted a tier two business
model: it designs and manufactures game-changing products and
partners with established companies in its target markets to
utilize their sales channels for faster product roll-out. This
strategy and the superior characteristics of the products have
resulted in rapidly growing sales in both markets and opened up
opportunities that could lead to large scale contracts on an
ongoing basis. To find out more about ICI please visit our website
at: www.innovativecompositesinc.com Neither TSX Venture Exchange
nor its Regulation Services Provider (as that term is defined in
the policies of the TSX Venture Exchange) accepts responsibility
for the adequacy or accuracy of this release. "Statements made in
this press release include forward-looking statements that involve
a number of risks and uncertainties. These statements relate to
future events or future performance and reflect management's
current expectations and assumptions. A number of factors could
cause actual events, performance or results to differ materially
from the events, performance and results discussed in the
forward-looking statements, such as the economy, generally,
competition in its target markets, the demand for ICI's products
and the availability of funding. These forward-looking statements
are made as of the date hereof and ICI does not assume any
obligation to update or revise them to reflect new events or
circumstances. Actual events or results could differ materially
from ICI's expectations and projections." Innovative
Composites International Inc. CONTACT: Ilja Troitschanski or Philip
DaleChief Financial TMX EquicomOfficer (416) 646 (416) 815 0700 ext
2530754 ilja@innovativecompositesinc.com pdale@equicomgroup.com
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