DALLAS, Jan. 9, 2003 — Electric & Gas Technology Inc. announced its acquisition of 80% of Logic Metals Technology, Inc. (LMT) located in Garland, Texas.
Ken Wilemon, a metal fabrication executive now serving as LMT’s President, holds the 20% balance of ownership and will remain as president. In a separate transaction, ELGT acquired a 144,000 square foot manufacturing facility from Flextronics, Inc., also located in Garland, which will serve as the new location of LMT and Atmospheric Water Technology, Inc. (AWT), another ELGT subsidiary.
“Logic is a strategic acquisition for ELGT,” stated Daniel A. Zimmerman, President and COO of ELGT. “ELGT has a successful track record in the contract manufacturing business. Together, ELGT and Ken Wilemon were able to take our previous subsidiary, Logic Designs, Inc., from under a million dollar-a-year shop when we bought it in the mid-1980’s to a thirty-plus million-dollar facility when we sold it nine years later. Our return to the sheet metal business is well timed. While so many of our competitors are down-sizing their operations, we are expanding.”
“The manufacturing facility we acquired from Flextronics is exactly suited to our current need and future growth strategy, being fully wired for plant automation, totally climate controlled and equipped with electric power capacities to accommodate rapid expansion,” voiced Zimmerman. On the prospect of Logic’s ISO 9002 certified manufacturing operation sharing the new facility with AWT, Zimmerman commented, “we anticipate that demand for our AWT Watermakerâ„- products will generate significant additional revenue opportunity for Logic. Also, the facility will have a demonstration water plant for AWT to showcase to potential clients from around the world.”
ELGT will consolidate all subsidiary operations, including Hydel, Ltd., Reynolds Equipment Company, Atmospheric Water Technology, Inc. and Logic Metals Technology, Inc., which is projected to approach $18 million in 2003 revenue, a 50% increase in sales over 2002.
The transaction was financed by ELGT’s affiliate, Interfederal Capital, Inc. (ICI), which supplied initial $515,000 cash and initiated a first mortgage promissory note for $1,931,250 plus a short term note of $128,750 both payable to the seller of the real estate, Flextronics, Inc., all of which has been assumed by ELGT. In addition, ELGT assumed $445,000 equipment bank debt. The purchase was consummated by payment of $200,000 by issuance of 400,000 Rule 144 restricted shares of newly issued ELGT common stock to ICI.
Electric & Gas Technology, Inc. (ELGT) was organized under the laws of the State of Texas on March 18, 1985, to serve as a holding company for several operating subsidiary businesses. Atmospheric Water Technology, Inc. (AWT), a subsidiary of ELGT, was incorporated in June 1997, with the purpose of focusing on opportunities within the water industry. Other ELGT businesses include Reynolds Equipment Company, which provides a broad line of precision instrumentation to the natural gas industry; Hydel, Ltd., a designer and seller of meter sockets and pole line hardware to the electric utility industry; and Logic Metals, Inc., an affiliated manufacturer of precision sheet metal applications.
ELGT owns several U.S. Patents and Copyrights and two U.S. Patents pending. Through its Research and Development division, headed by ELGT CEO and Chief Engineer, S. Mort Zimmerman, scientific projects relating to ultra purification of drinking water and a system using hydrogen peroxide to generate electric power have been developed. ELGT holds patents relating primarily to its Atmospheric Water Technology, Inc. subsidiary, building products that produce healthy purified drinking water “from the air we breathe.”