BIRMINGHAM, Ala., Feb. 14, 2011 (GLOBE NEWSWIRE) -- Arcis Resources Corporation (Arcis) (OTCBB:ARCS) has entered into a Exchange Agreement to acquire all the member interests of American Plant Services, LLC and all of the shares of Mobile Fluid Recovery, Inc. Upon close of this transaction, APS and MFR will become wholly owned business units of Arcis Resources Corporation and the basis for completing Arcis CEO Kenneth Flatt's strategic vision of an integrated global energy and reclamation services company capitalizing on the growth of the $5.8B global beneficial reuse market.
According to Mr. Flatt, the addition of these two business units in combination with Arcis Energy, a wholly owned subsidiary of Arcis, forms a platform that will "create significant shareholder value from industrial chemical by-products and become a major player in the global beneficial reuse market. By reclaiming and remediating industrial customers' chemical and petroleum by-products, Arcis will obtain low-cost feed stocks and convert them into valuable commodity products sold to end-users through Arcis Energy's distribution & logistics platform. As a result of Arcis Energy's deep network of international and domestic buyers, Arcis will be able to deliver significantly enhanced margins translating into significant shareholder value. Operating as an integrated single point provider, Arcis will be able to realize maximum value from its Fortune 500 client portfolio by cross selling these (APS & MFR) business unit platforms."
"APS creates a solid foundation from which to execute this vision due to its experienced management team and the depth of its Fortune 500 industrial customer relationships," said Mr. Flatt. Formed in 2002, American Plant Services is a full service, turn-key provider of industrial cleaning, mechanical and maintenance services, and environmental project management solutions with over 170 employees. By combining the best technological capabilities and expertise with a focused, business-plan approach, APS delivers cost-effective and sustainable environmental solutions that deliver tangible bottom line results. Since 2002, APS has serviced top-tier clients such as Owens Corning, Rio Tinto, Nucor Steel, Tyson Foods, and Georgia Power, among others, through its locations in 4 states. Over the last six months, APS has executed significant Master Services Agreements with top tier clients including Rio Tinto, Georgia Power, MeadWestVaco, and Progress Energy, Newmont Mining, among others. Based on the historical industrial services spend of these clients for these particular facilities, APS management is projecting significant growth for 2011.
"As proven by MFR's very successful oil boom reclamation program with General Motors during the Gulf of Mexico oil spill in 2010 and subsequent success in rolling out the MFR service to other GM plants, MFR will deliver sizeable value through its patented "free liquids" recovery service and as a significant source of low cost beneficial re-use feed stocks," according to Mr. Trevis Lyon, COO of Arcis. Mobile Fluid Recovery's patented SpinCycle™ centrifuge technology removes liquids from absorbent, wipes, and rag materials used in industrial, clean-up, and maintenance processes. MFR is well positioned to benefit from several market conditions that will drive long term growth. First, the $1.45B U.S. industrial market for sorbent materials is growing at a rate of 5% per annum. Second, the market price of Polypropylene, the primary material used for industrial sorbent products, has been forecast to increase, which will force industrial users to find less costly clean-up solutions, such as MFR's SpinCycle™. Third, increasing costs and regulatory liability in handling and disposing of hazardous waste is driving industrial customers to implement waste minimization programs. Fourth, industrial customers are increasingly focused on the market's perception of their "green" image.
MFR's operations will provide three revenue streams for Arcis. First, MFR receives a service fee for reclaiming the free liquids and recycling the customer's absorbents, which may be re-used 5-15 times depending on the material type. Second, MFR sells absorbents, wipes, and rags to its customers to replace their absorbents that are no longer recyclable. Lastly, MFR will sell the reclaimed "free liquids," which typically are composed of solvents or distillates, as a beneficial reuse product via Arcis Energy's distribution and logistics business unit.
"We are looking forward to completing the transaction, and fully integrating these two unique companies into the Arcis platform. This combination of services will enable us to provide the complete spectrum of services required by our industrial customers and create a pipeline to low cost beneficial reuse feed stocks with a built-in distribution platform to maximize their value," according to Mr. Lyon.
Arcis anticipates closing the transaction on or before April 30, 2011.
American Plant Services, LLC, an Alabama limited liability company ("APS") is headquartered in Birmingham, AL with operations in Alabama, Utah, Georgia, and Virginia.
Mobile Fluid Recovery is an Ohio corporation ("MFR") headquartered in Birmingham, AL with operations in Ohio and Alabama.
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