WASTEMASTERS TO ACQUIRE PARZIALE WASTE SYSTEMS, INC.
ATLANTA, April 28 /PRNewswire/ -- WasteMasters, Inc. (Nasdaq: WASTE) announced today that it has signed a Letter of Intent to purchase Parziale Waste Systems of Bayshore, Long Island, New York. The purchase of Parziale establishes WasteMasters operations in the metro-New York market. The terms of the purchase included primarily 1, 280,000 shares of restricted WAST stock, cash and the assumption of $280,000 of Parziale's debt. An additional bonus will be provided should sales exceed certain criteria during the first two years of ownership by WAST.
Parziale's sales are currently $1,200,000 per year and the Company anticipates sales in 1999-2000 to exceed $2.0MM. The asset base will contribute approximately $600,000 to WAST's balance sheet and, subject to the ultimate structure of the transaction, the net equity to the balance sheet will be positive.
Leon Blaser, Chairman of WasteMasters stated that, "We believe this is a significant acquisition because it establishes our roll-off transportation operations on Long Island and is the beginning of our strategy to develop the smaller "third tier" market in the metro NY market. The Company's significant roll off business in its local market coupled with its experienced management is representative of the type of acquisitions that will grow WasteMasters."
David N. Fuselier, management consultant to WasteMasters reiterated the same, "Parziale Waste is a small but capable operator in its Long Island market and typifies the type of tactical investments that will create shareholder value in the near term. Parziale has an excellent reputation in its market and is known for its dependable service. When combined with other proposed operations in the metro New York market Parziale should contribute significant revenues and operating profits for the Company."
WasteMasters anticipates closing Parziale Waste Systems by May 31, 1999.
This release contains forward looking statements with respect to
the results of operations and business of WasteMasters, Inc. that
involve risks and uncertainties. The company's actual future results
could materially differ from those discussed. Risks and uncertainties
of the company will be detailed from time to time in the company's
periodic reports. The company intends that such statements about the
company's future expectations, including future revenues and earnings,
and all other forward looking statements be subject to the "safe
harbors" provision of the Private Securities Litigations Reform Act of
1995.
SOURCE WasteMasters, Inc.
-0- 04/28/99 /CONTACT: Mike Smith, President of WasteMasters, Inc., 770-399-3111/
(WASTE)
CO: WasteMasters, Inc.; Parziale Waste Systems, Inc. ST: Georgia,
New York IN: ENV SU: TNM