GEM Sells Business, TSDF to Luntz Acquisitions
General Environmental Management, Inc., a Nevada corporation, completed the sale of its Western Region Field Service business and its Rancho Cordova Transfer, Storage, and Disposal Facility to Luntz Acquisition (Delaware) LLC.
The sale was approved at a special meeting of stockholders last month.
Tim Koziol, chief executive officer of GEM, commented, “This sale was an important part of our transition strategy into the wastewater treatment services and waste-to-energy markets and will allow GEM to build on its recent acquisition of Santa Clara Waste Water Company, a wastewater treatment business."
“Our focus in wastewater treatment services and waste to energy will be in areas that are typically overlooked with new and innovative ideas,” said Bill Mitzel, president and chief operating officer of GEM. “The two technologies have mostly been treated separately, but we are looking at ways to combine both for a greener approach.”
Brett Clark, chief financial officer of GEM, added, “The transaction was able to reduce our outstanding obligations to our senior lender by $9.1 million. The remaining obligation of approximately $1.2 million will be paid down when certain assets and deposits are realized over the next nine months. The senior debt outstanding of $5.6 million related to the mobile treatment business will be offset by a note receivable from the buyers of that business. This note receivable will be paid when the mobile treatment business buyers refinance their debt, which is expected later this year. In total, the senior lender liability will have been reduced by over $15.9 million.”
General Environmental Management, Inc. owns and operates a non-hazardous wastewater treatment facility in Santa Paula, Calif., and provides environmental services and solutions.