HOUSTON
—Gundle/SLT Environmental, Inc. (GSE) today announced
that it has acquired the operating assets of SL Limitada,
(SL) a privately owned company, located in Santiago and Antofagasta,
Chile.
Under terms of the agreements, GSE will not assume any of
SL liabilities other than the sales backlog and open purchase
orders for raw materials. GSE will be privileged to continue
servicing all of SL customers in South America and in other
parts of the world.
“This
acquisition will provide GSE with a significant presence in
the South American market and should enhance our responsiveness
to the needs of our customers in this part of the world at
a competitive cost advantage,” said Samir T. Badawi,
President and CEO. “We are acquiring a well run operation
and will be welcoming an outstanding group of employees into
GSE.”
SL's
revenue was approximately $33 million for the first ten months
of 2005. The annual production capacity of approximately 40
million pounds will be marketed primarily in the South American
region with emphasis on the growing market for high quality
geomembrane products for the mining industry, solid waste
and water management. Badawi also said the acquisition is
expected to be accretive. “We expect to realize savings
in transportation costs and by improving plant utilization
rates which will provide the potential for earnings improvement.
We believe the acquisition further strengthens our balance
sheet and improves our credit ratios.”
Gundle/SLT
Environmental, Inc. is the world leader in providing geosynthetic
lining solutions, products and services to satisfy the needs
of domestic and international, municipal and private companies
engaged in the waste management, mining, water and wastewater
treatment, aquaculture and other industrial activities. ***
Private
Securities Litigation Reform Act of 1995. When used in this
press release the words, “believe”, “expect”,
“intend” and words or phrases of similar import,
as they relate to GSE or its management, are intended to identify
forward-looking statements. Such statements reflect the current
risks, uncertainties and assumptions related to certain factors
including, among other things, competitive market factors,
worldwide manufacturing capacity in the industry, general
economic conditions around the world, raw material pricing
and supply, governmental regulation and supervision, seasonality,
distribution networks and other factors described more fully
in GSE's reports filed with the Securities and Exchange Commission.
Based upon changing conditions, should any one or more of
these risks or uncertainties materialize, or should any underlying
assumptions prove incorrect, actual results may vary materially
from those currently believed, expected or intended.
For more information contact
Kelvin R. Collard (281) 230-2512
"Safe
Harbor" Statement under the Private Securities Litigation
Reform Act of 1995: Statements in this press release regarding
Gundle/SLT Environmental's business which are not historical
facts are "forward-looking statements" that involve
risks and uncertainties. For a discussion of such risks and
uncertainties, which could cause actual results to differ
from those contained in the forward-looking statements, see
"Risk Factors" in the Company's Annual Report or
Form 10-K for the most recently ended fiscal year.
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