ATLANTA, GA--(Marketwired - Mar 28, 2017) - Speedemissions, Inc. (OTC PINK: SPMI) (the "Company"), a leading vehicle emissions testing and safety inspections company operating 22 stores in the Atlanta and St. Louis markets, and developer of CARbonga-SRI, the revolutionary automobile diagnostic iPhone app, and BuyCarSafety.com's ADVISR (Automotive Vehicle Information Safety Report) today announced that it has closed an Asset Purchase Agreement with Auto Recycling of Montgomery ("ARM"), an Alabama corporation, pursuant to which the Company agreed to purchase certain assets of ARM, including land, buildings, equipment and inventory previously used by ARM in an auto recycling operation which ceased operations in June of 2014.
"This segment of the automotive industry has been carefully reviewed and studied as was noted in the shareholder update. There are a number of parallels between the salvage yard and emission testing industries. It's highly fragmented, has stable revenue streams and consistent cash flow. In addition, with the average age of cars in the U.S. at 11.6 years, we believe that it will offer us the opportunity to grow our business in a steady manner over the next few years," stated Rich Parlontieri, President/CEO.
With the Asset Purchase Agreement, Speedemissions intends to create an auto salvage business operation at the existing location in Montgomery, AL. but expects it will take approximately 60 days to hire employees and put the necessary business systems in place before sales operations can commence.
As part of an overall strategic initiative, Speedemissions has formed a wholly-owned subsidiary for the purpose of seeking future acquisitions within the auto recycling industry, subject to capital availability, in addition to its existing vehicle emission testing business operations.
"During our due diligence, we realized that there exists a significant number of industry candidates across the US and Canada that may present attractive opportunities for us. We are looking to focus on the $500,000 to $2.0 million dollar yard opportunities, initially," added Parlontieri.
The U.S. Automotive Recycling Industry
According to the Automotive Recyclers Association (ARA), the voice of the professional automotive recycling industry, the U.S. professional automotive recycling industry is a vibrant and thriving part of the automotive supply chain, representing over $32 billion in sales annually. Automotive recycling businesses employ over 140,000 people at more than 9,000 locations around the country.
Information on this transaction is available in the Company's Form 8-K, which was filed on March 27, 2017 and available on the Speedemissions, Inc. website at www.speedemissions.com or through the Securities and Exchange Commission's Edgar database at www.sec.gov.
ABOUT SPEEDEMISSIONS, INC.
Speedemissions, Inc., based in Atlanta, Georgia, is a national brand offering our customers quick and efficient emission testing and/or safety inspection as required by law. The company is in the Atlanta, GA. and St. Louis, MO. markets. For more information, visit: www.speedemissions.com
Speedemissions, Inc. owns and developed the CARbonga-SRI apps for iPhone users. CARbonga-SRI is an app which allows the average person to detect automotive car problems for their own vehicle or when buying a used vehicle. The CarBonga-SRI app provides a quick and easy way for consumers to stay on top of the safety of their vehicle by providing the most current safety-related recalls and technical service bulletins for their vehicles. For more information, visit www.carbonga.com and for CarBonga news updates follow @CarbongaApp on Twitter.
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FORWARD LOOKING STATEMENT
Certain statements contained in this news release regarding matters that are not historical facts may be forward-looking statements. Because such forward-looking statements include risks and uncertainties, actual results may differ materially from those expressed in or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, uncertainties pertaining to market acceptance for Speedemissions' products and services, its ability to succeed in increasing revenues in the near term to attain profitable operations and generate sufficient cash flow from operations, the effect of new competitors in its markets, its integration of acquired businesses, and other risk factors identified from time to time in its filings with the Securities and Exchange Commission, including Speedemissions' Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and current reports on Form 8-K which are available at the SEC's website www.sec.gov. Other factors not currently anticipated may also materially and adversely affect Speedemissions' results of operations, financial position, and cash flows. There can be no assurance that future results will meet expectations. While Speedemissions believes that the forward-looking statements in this news release are reasonable, the reader should not place undue reliance on any forward-looking statement. In addition, these statements speak only as of the date made. Speedemissions does not undertake, and expressly disclaims any obligation to update or alter any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.