SOURCE: Tire International Environmental Solutions, Inc

Tire International Environmental Solutions, Inc

January 18, 2011 10:55 ET

Tire International Contracts to Acquire Leading Manufacturer and Distributor of Recycled Rubber Products

Company to Begin Operations With EBITDA Positive Acquisition

NEW YORK, NY--(Marketwire - January 18, 2011) - Tire International Environmental Solutions, Inc. (OTCBB: TRIE), an emerging tire recycling and finished consumer and industrial product company, announced today that it has agreed to acquire Tonmik Import Export Solutions, Inc., a Montreal-based distributor of recycled rubber products that are currently manufactured at its facilities in China.

With this acquisition, Tire International will begin its operational phase allowing the company to execute its United States tire recycling strategy.

Tire International expects to develop a fully integrated scrap-tire-to-finished-product business capitalizing on the consumer demand for Tonmik finished product order flow that could not be maximized with its Chinese facilities. The availability of U.S. based scrap tires that provide a negative cost raw material and the strong existing market for the Tonmik finished products will allow the company to implement its proprietary manufacturing technology while increasing the revenues and operating margins of Tonmik's traditional business.

Tonmik will be acquired through the issuance of a $1.7 million cash flow note. In 2009, Tonmik reported $1.1 million in revenue and $207,000 in EBITDA. For the first nine months of 2010, Tonmik reported revenue of $2.7 million and EBITDA of $442,000.

Tire International CEO Anthony Care said, "This is the first major step in our strategic plan to transform our company into a premier tire recycling and finished rubber products company. Tonmik has a six year history of successful operations including sales of its molded recycled rubber products to big box stores in Canada and the U.S. Tonmik currently manufactures its finished products with rubber from recycled tires in China. This acquisition provides our company with fresh cash flow and the strategic ability to expand the Tonmik business into the U.S. market through tire recycling acquisitions that will supply the raw material as we build out our proprietary technology."

About Tonmik
Tonmik is a wholesale distributor and manufacturer of recycled and virgin rubber products for the home and garden industry. Tonmik's finished products that include rubber pavers, rubber mulch, rubber stepping stones and slip resistant floor mats are sold through leading big box stores in the United States and Canada. See www.tonmik.com for more details on the Tonmik's product lines and customer base.

About Tire International Environmental Solutions Inc
Tire International Environmental Solutions, Inc. is a U.S. based company that is seeking one or more business opportunities in tire recycling, and waste to value sectors within the waste management industry. The company may seek a business opportunity with entities which have recently commenced operations, or which wish to utilize the public marketplace in order to raise additional capital in order to expand into new products or markets, to develop a new product or service, or for other corporate purposes. The company may acquire assets and establish wholly-owned subsidiaries in various businesses or acquire existing businesses as subsidiaries.

For more information visit: http://www.tireinternational.net.

Forward-Looking Statements
This release contains "forward-looking statements" and information provided by Tire International Environmental Solutions, Inc., such as online, printed documents, publications or information available via Tire International Environmental Solutions, Inc.'s website. It may contain certain forward-looking statements that involve risks, uncertainties, assumptions and other factors, which, if they do not materialize or prove correct, could cause Tire International Environmental Solutions, Inc.'s results to differ materially from historical results, or those expressed or implied by such forward-looking statements. All statements, other than statements of historical fact, are statements that could be deemed forward-looking statements, including statements containing the words "planned," "expects," "believes," "strategy," "opportunity," "anticipates," and similar words, including but not limited to, statements regarding corporate plans, strategies and objectives of management; statements regarding products, services or developments; statements regarding future economic conditions; and assumptions underlying any of the foregoing.

Contact Information

  • Investor Contacts

    Martin Sergi
    Chief Financial Officer
    Tire International
    (201) 401-7077
    Tire_International@hawkassociates.com

    Frank Hawkins
    Julie Marshall
    Hawk Associates
    (305) 451-1888