Global 8 Environmental Technologies, Inc. signs LOI to acquire majority stake in Peterborough recycling facility
- Category: Finance
05 Jun 2009
- Published on Friday, 05 June 2009 09:56
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Global 8 Environmental Technologies, Inc., a leading provider of solutions for the health and recovery of the environment, has signed a letter of intent (LOI) to acquire a majority stake in Park Terrace Development Corporation, the operator of a recycling facility in Peterborough, Ontario.
The value of the 120,316-square foot recycling facility in Peterborough was recently appraised at $5.8 million. The transaction is expected to close by June 15, 2009. This is the first joint venture between Global 8 Environmental Technologies and Courtice Industries, Inc., the parent company of Park Terrace Development Corporation.
The facility is scheduled to commence operations by the third quarter of this year, processing at least 100,000 tons of Blue Box recyclable materials such as paper, fiber, plastic, cardboard, and aluminium per year upon reaching full capacity. The projected annual revenue from the sales of recyclable materials processed at the facility at average market prices is $14.5 million, with $9 million generated in EBITDA.
The recycling facility has a rail spur line adjacent to its operations, which would allow the direct loading of commodities into box cars for shipment to the West Coast, and even the Asia-Pacific region. Global 8 Environmental Technologies plans to convert the recycling facility into a self-sufficient Environmental Technology Center by adopting renewable energy technologies such as geothermal and solar. By doing so, the company will be able to gain significant cost-savings from its energy expenses.
Park Terrace Development Corporation has already signed numerous contracts to generate millions of dollars in revenue from the recyclable products processed at the Peterborough recycling facility. Some of these contracts include an agreement with the city of Toronto for the collection and processing of all its Blue Box waste, which is approximately 30,000 tons annually; supply contracts with local paper mills for the purchase of all fiber produced at the facility at or above the current market prices; and an agreement with Trans Canada Recyclers, Inc. for the sale of 10,000 containerized metric tons of Grade 8 or better newsprint per month processed at the facility in China and Southeast Asia.
The company is also in talks with Ontario-based Atlantic Packaging Products Ltd. to provide them with recyclable materials to be processed at the facility.
Aside from the recycling facility in Peterborough, Courtice Industries’ principal, Harvey Ambrose, also owns numerous waste plants, including a fully-operational waste transfer station in Oshawa to process food waste, a large municipal and paper sludge processing plant in Niagara Falls, a 40-acre, $45-million organic recycling plant in Hamilton, and a lakeshore property in Gatineau, Quebec. Ambrose’s property in Quebec contains a landfill, a quarry with more than 200,000 tons of high-quality granite, and 640 acres of land to utilize renewable energy technologies such as geothermal, wind and solar energy, and wastewater treatments.
Global 8 Environmental Technologies, Inc. provides solutions for the health and recovery of the environment through the development of Environmental Technology Centers. The company’s four subsidiaries are based around the four elements of nature: Global 8 BioOrganics, Inc. for Earth; Global AirFlow, Inc. for Air; Global 8 BioEnergy, Inc. for Fire; and Global 8 WaterFlow, Inc. for Water. The company is based in Newport Beach, California.
- Natassia Y. Laforteza