Waste Energy Corp. announced two strategic initiatives that could expand its operating footprint and future revenue platform
Waste Energy has entered into a signed, non-binding Letter of Intent (“LOI”) for the potential acquisition of an established tyre processing operation and associated real estate and operating assets.
The contemplated transaction has a proposed purchase price of approximately $1.2 million and includes an approximately 10-acre industrial property, together with the business’ operating assets. Under the contemplated structure, Waste Energy would own 51% of the acquisition entity.
Waste Energy believes the operation could potentially process 3 million to 5 million tyres annually, generating approximately $3 million to $5 million in annual revenue if the transaction is completed and the operation achieves anticipated processing levels.
The LOI is expressly non-binding with respect to completion of the acquisition, and there can be no assurance that definitive agreements will be executed or that the proposed transaction will close. To protect the transaction while negotiations and due diligence continue, Waste Energy is not identifying the business, its location or other information that could reasonably identify the proposed acquisition target.
“Opportunities of this potential scale are exactly why we have remained focused on building Waste Energy as an environmental infrastructure company rather than around a single facility or technology,” said Scott Gallagher, Chairman and CEO of Waste Energy Corp. “If completed, this transaction could significantly increase the number of tyres moving through the WEC platform and create another meaningful source of operating revenue.”
Another initiative Waste Energy is working on is advancing the previously announced expansion of its flagship Midland, Texas waste conversion campus. The company remains on track to close the previously announced expansion transaction, which could substantially increase the physical footprint available for WEC’s waste processing, tyre handling and future conversion operations.
“Our strategy continues to come together around scale,” Gallagher added. “We are advancing our Midland operations while simultaneously pursuing opportunities that can add real estate, processing capacity, operating infrastructure and revenue to the WEC platform. We believe these initiatives, if successfully completed, can move Waste Energy into a substantially larger phase of its development.”
