Unisphere Waste Conversion Ltd., an environmental solutions provider, has signed a Letter of Intent to acquire Chatham Rubber Manufacturing Corporation, Wellington Polymer Technology Inc and Entireco, subject to due diligence, financing, formal agreements, board and regulatory approval.
In keeping with the company’s growth plan and vertical integration strategy, Chatham Rubber of Chatham Ontario contributes crumbing operations in Ontario with long-term contracts, such as Enviroshake(TM), and supply agreements with several large manufacturers and other distribution channels. Chatham Rubber has state-of-the-art shredding and crumbing equipment and is adding additional equipment to meet the increasing demand for product. Crumb rubber currently accounts for 24 per cent of the recycled-tire product in civil engineering, tire-derived fuels (TDF), and rubber mat companies. Emerging markets include golf courses, playgrounds and asphalt extenders. The Ontario Tire Stewardship Board is developing a mandate to remediate all existing tire sites in Ontario as well as control and disposal of the annual flow. Unisphere and Chatham Rubber are well positioned to secure existing tire supplies as well as part of the annual flow of tires in Ontario.
Entireco brings to Unisphere the potential rights to two of the largest scrap tire sites in Quebec consisting of over 300,000 tonnes of scrap tires along with lucrative government and private contracts to remediate scrap tires. Unisphere through Crumb Technologie, its wholly-owned subsidiary in Quebec combined with Entireco will support Recyc Quebec’s efforts to remediate all existing tires sites and control the annual flow in Quebec by 2008.
Wellington Polymer Technology is a leading alternative roofing manufacturer generating a product made from recycled tires and other waste streams to create a cedar shake replica. Wellington Polymer Technology Inc.’s Enviroshake(TM) was the winner of the 2001 Canadian Award of Excellence for Innovation. Enviroshake(TM) has a 50-year warranty and current demand far exceeds the supply of product. This trademarked environmental roofing product adds an additional revenue stream and further enhances Unisphere’s leading market position in Ontario.
Chatham Rubber also brings with it a substantial piece of real estate appraised at $9 million. This 320,000 square foot building on 32 acres houses the current Chatham Rubber and Wellington Polymer operations, including room to add more production lines, as well as long-term lease contracts with reliable tenants.
John Wypich, president and CEO of Unisphere, said "The merger of ‘The Chatham Group’ coupled with Unisphere’s existing services, positions the company as a leading solutions provider to the world’s used tire problem. The success of this merger will give the company control of tire supply, distribution, processing and marketing."
Dan Warrener, president and CEO of Chatham Rubber, Wellington Polymer and Entireco stated, "This vertical integration creates a company with superior margins, long-term competitive advantage with multiple revenue streams and exciting growth potential."
Unisphere has engaged Westwind Partners as exclusive financial advisor to Unisphere for the acquisitions and has also been retained to assist in the raising of capital to complete the acquisitions and to fund the Belledune project. Westwind’s partners have successfully advised on over $30 billion of mergers and acquisitions transactions over 20 years.
Unisphere Waste Conversion Ltd. is a Canadian environmental solutions company, committed to becoming the global leader in tire recycling through vertical integration, producing value added products, renewable energy, and reusable raw materials.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release. Some of the statements contained in this release are forward-looking statements, such as estimates and statements that describe the company’s future plans, objectives or goals, including words to the effect that the company or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements.
For further information: please contact:
Unisphere Waste Conversion Ltd.,
84 Avenue Road, Toronto, Ontario, M5R 2H2, 416-966-4555,
Or, Dan Warrener, president & CEO,