Energy & Environmental Services signs LOI to purchase Texas
OKLAHOMA CITY, Jan. 9, 2020 /PRNewswire/ -- Energy & Environmental Services, Inc. ("EES" or "Company") (OTC: EESE) today announced that the Company has signed a non-binding letter of intent to acquire Texas-based Abilene Celex Services, LLC ("Celex").
Subject to a definitive agreement, EES will pay the Celex members $325,000 in cash. Celex will retire all accounts payable, notes and other obligations so that Celex will have no liabilities as of the closing.
The combination of EES and Celex would have generated total unaudited combined revenues of $7.6 million for 2018. Management estimates that pro forma combined revenues for 2019 would be approximately $9.5 million. EES's consolidated revenues for 2018 were $7.2 million and its estimated consolidated revenues for 2019 (excluding Celex) are approximately $8.8 million.
"We are very excited about the location and personnel we are gaining with the acquisition of Celex," said CEO Leon Joyce. "For EES, the acquisition would realize one of management's key initiatives, which is to gain market share through mergers and acquisitions. This is a strategic move and a great opportunity to expand in the Snyder, Texas region where we own property and blend chemicals. As we grow this segment of the company, we will continue to look for opportunities," added Joyce.
"We are excited to join forces with a company like EES. The consolidation of inventories and volume discounts on raw materials will only add to the list of benefits," stated Jeremy Sockwell, a member of Celex.
Energy and Environmental Services, Inc. (OTC: EESE), based in Edmond, Oklahoma, participates in the oilfield chemical, anti-corrosive coatings and biotech industries. EES was established in 1991 and management has over 50 years of experience blending, manufacturing and packaging custom liquids and solid chemicals for the oil, gas and agricultural industries. Additionally, EES has expanded to develop innovative products and applications for enzyme system technologies and livestock feed supplements.
Company website www.eesokc.com
Safe Harbor for Forward-Looking Statements
Certain statements contained in this press release are forward-looking statements. These forward-looking statements involve risks and uncertainties that could cause Energy & Environmental Services actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Except as required by law, Energy & Environmental Services expressly disclaims any intent or obligation to update any forward-looking statements.
SOURCE Energy and Environmental Services, Inc.