Date: May 30, 2007
Source: Perma-Fix Environmental Services, Inc.
Perma-Fix Enters Into Letter of Intent to Sell Industrial Segment
Transaction Subject to Execution of Definitive Agreements
Perma-Fix Environmental Services, Inc. (Nasdaq: PESI) today announced that it has entered into a letter of intent to sell its Industrial Segment to EQ - The Environmental Quality Company (EQ). The letter of intent provides that EQ would purchase five of the company's six industrial facilities for $9 million, subject to adjustment under certain conditions. The facilities to be acquired include: Perma-Fix Treatment Services; Perma-Fix of Fort Lauderdale; Perma-Fix of Orlando; Perma-Fix of South Georgia; and Perma-Fix of Maryland. In addition, EQ would be granted an option to purchase the assets of Perma-Fix of Dayton. Upon exercise of the option, EQ would pay an additional purchase price of up to $2 million. The letter of intent is subject to EQ completing its due diligence and the parties entering into definitive agreements. EQ is a leading provider of comprehensive waste and environmental services, headquartered in Wayne, Michigan.
Dr. Louis F. Centofanti, Chairman and Chief Executive Officer, stated, "We are pleased with the terms of our Letter of Intent to sell the Industrial Segment. EQ brings the scale and expertise to maximize the return on these facilities. Meanwhile, the intended sale of our Industrial Segment will allow us to focus resources on the Nuclear Segment, which has very attractive growth opportunities ahead, with much higher margins, strong cash flow and substantial barriers to entry for potential competitors."
EQ operates seventeen treatment, disposal and recycling facilities throughout the eastern half of the United States and manages an extensive line of remediation, industrial cleaning and total waste management services nationwide. David Lusk, President of EQ, stated, "The addition of Perma-Fix's Industrial Segment to EQ will add to the successful growth that we have experienced as a company. The Perma-Fix facilities incorporated into our network will broaden our capacity to provide quality environmental services to our customers." EQ is one of the largest privately held environmental organizations in the country. For additional information on EQ, please visit www.eqonline.com.
This press release contains certain "forward-looking statements" which are based largely on the Company's expectations and are subject to various business risks and uncertainties, certain of which are beyond the Company's control. Forward-looking statements include, but are not limited to, that the intended sale of our Industrial Segment will allow us to focus resources on the Nuclear Segment, which has very attractive growth opportunities ahead, with much higher margins, strong cash flow and difficult barriers to entry for potential competitors. The forward-looking statements are intended to qualify for the safe harbors from liability established by the Private Securities Litigation Reform Act of 1995. While the Company believes the expectations reflected in this news release are reasonable, it can give no assurance such expectations will prove to be correct. There are a variety of factors which could cause future outcomes to differ materially from those described in this release, including, without limitation, future economic conditions; industry conditions; competitive pressures; and the government continuing to utilize our facilities to store, treat and dispose of nuclear and mixed waste. The Company makes no commitment to disclose any revisions to forward-looking statements, or any facts, events or circumstances after the date hereof that bear upon forward-looking statements.