SAN DIEGO, Sept. 14, 2010 (GLOBE NEWSWIRE) -- GreenHouse Holdings, Inc. (OTCQB:GRHU) ("GreenHouse"), a San Diego, California based integrated energy solutions provider and developer of eco-friendly infrastructure, today announced the signing of a Letter of Intent to acquire Control Engineering, Inc (CEI). Headquartered in Costa Mesa, California and serving clients globally, CEI provides turnkey automation and control solutions including engineering, installation and integration services. Experts in multiple technologies and applications, CEI's client base includes recognizable brands from a wide range of industries including pharmaceutical, food, beverage, utility, military and consumer goods.
The acquisition, when consummated, is expected to significantly increase gross margins in GreenHouse's Energy Services Division via vertical integration of CEI's business. The acquisition is also expected to provide cross-selling opportunities of GreenHouse products and services to CEI's existing clients.
"We are excited to have executed the Letter of Intent with CEI and believe this combination will be beneficial to the shareholders of both companies," said John Galt, Executive Chairman of GreenHouse. "CEI has a stellar reputation of service to Fortune 500 clients over its 16-year history, and the acquisition should represent a significant step in executing our strategy to expand our energy efficiency and load reduction programs to commercial, industrial and governmental clients," continued Galt.
Key Strategic Benefits for GreenHouse:
- The acquisition is expected to significantly increase gross margins in GreenHouse's Energy Services Division via vertical integration of CEI's business. The acquisition is also expected to provide cross-selling opportunities of GreenHouse products and services to CEI's existing clients.
- The acquisition should immediately give GreenHouse access to the expert knowledge of CEI in commercial and industrial automation.
- The anticipated cost saving as a result of the acquisition will provide a competitive advantage to GreenHouse in the Automated Demand Response market.
Seamless Combination of Management Teams
CEI's team members are expected to stay in their current or similar roles and will work directly with GreenHouse executives to manage the integration and restructuring of CEI's operations with GreenHouse's. GreenHouse will provide its expectations of when the transaction is projected to close and provide specific revenue and earnings per share guidance in a future announcement.
Closing Conditions
The transaction is subject to a number of customary regulatory and other closing conditions, including the execution of a definitive agreement and an audit of CEI. The transaction is not subject to approval by GreenHouse shareholders nor is it subject to any financing conditions.
About GreenHouse Holdings, Inc.
GreenHouse Holdings, Inc. is a San Diego, California based integrator of some of the world's most innovative environmental, public safety, infrastructure technologies. GreenHouse provides systems that are financially sound and sustainable to residential, commercial, industrial and government markets around the globe. GreenHouse provides energy-efficiency products, energy management systems, eco-friendly infrastructure, scalable waste-to-fuel bio-fuel and closed loop systems, as well as other proprietary technologies and products that are utilized to provide a greener and safer future for millions of people. Other flagship products and solutions include the Green Village, R.A.P.S., and One Link. For more information, please visit: or the GreenHouse YouTube channel at or follow GreenHouse on Twitter @greenhouseintl.
The GreenHouse Holdings, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=7975
About Control Engineering, Inc.
Control Engineering Inc (CEI) is a full service industrial automation and controls company. CEI has been helping companies to achieve their productivity and resource efficiency goals through automation for over 16 years. CEI has completed projects in the oil and gas, chemical, water treatment, food, beverage, pharmaceutical, utilities, material handling, manufacturing and semiconductor industries. CEI is also a certified provider of Arc Flash consulting, including investigation, arc flash computer simulation and modeling, and labeling recommendations.
Safe Harbor Statement
This press release contains forward-looking statements that reflect the Company's current expectation regarding future events. Actual events could differ materially and substantially from those projected herein and depend on a number of factors. Certain statements in this release, and other written or oral statements made by GreenHouse Holdings, Inc. are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond the Company's control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements. The Company assumes no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. Important factors that could cause actual results to differ materially from the company's expectations include, but are not limited to, those factors that are disclosed under the heading "Risk Factors" and elsewhere in documents filed by the company from time to time with the United States Securities and Exchange Commission and other regulatory authorities.
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CONTACT: Hutchens PR Karen Hutchens (619) 236-0227 Mobile: (619) 985-7800 Karen@HutchensPR.com Alliance Advisors, LLC Investor Relations Bryan Kobel bkobel@allianceadvisors.net Chris Camarra ccamarra@allianceadvisors.net 212-398-3487