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.