GEM Intends to Acquire Santa Clara Waste Water
General Environmental Management, Inc. (GEM) has signed a definitive letter of intent on Sept. 21 to acquire Santa Clara Waste Water (SCWW), a profitable, 50-year-old wastewater treatment business.
As one of the top 100 privately owned non-hazardous wastewater utilities in the United States, SCWW has treated more than 2 billion gallons of wastewater.
“We are thrilled to have come to an agreement to acquire SCWW and are eager to work with them to achieve their goal of becoming the premier independent non-hazardous wastewater management company; first in California, then the western region and eventually in the United States,” said Tim Koziol, GEM chief executive officer. “SCWW CEO Doug Edwards and his team have set the standard for wastewater management. Their facility, situated on five acres of strategically located land in Santa Clara Valley along with their … 12.7 mile pipeline from their facility to the City of Oxnard’s water reclamation center, gives GEM a cornerstone to build a regional and then national presence in the water treatment market.”
“After getting to know GEM over that past few years, I am very excited to be uniting with their management team to build upon the success we have earned at SCWW,” said Edwards.
GEM Chief Financial Officer Brett Clark added, “SCWW has a very profitable business model. We are acquiring the company and all of its assets for approximately three times its trailing EBITDA, plus the assumption of long-term debt secured by SCWW’s plant and equipment. SCWW’s revenues in 2008 were approximately $7.6 million. The transaction is very accretive to GEM and will be paid for with a combination of cash, debt, and stock over the next three years. Details of the transaction will be provided upon closing, which is expected to occur within the next 60 days.”
General Environmental Management, Inc.is a full-service hazardous waste management and environmental services firm providing integrated environmental solutions managed through its proprietary Web-based enterprise software, GEMWare.