Lincoln Partners Represents Donlar Corp. in its Sale to Flexible Solutions International, Inc.
VICTORIA, B.C. - FLEXIBLE SOLUTIONS INTERNATIONAL, INC. (AMEX: FSI, FRANKFURT: FXI), the developer and manufacturer of environmentally safe water and energy conservation technology, today announced that it has completed its previously announced acquisition of all of the assets of Donlar Corp., of Bedford Park, Ill.
Terms of the $6.15 million acqusition included a cash payment of $3 million at yesterday's closing (less $50,000 already tendered) and a $3.15 million promissory note at prime rate due one year after the real-estate transfer. For the year ended Dec. 31, 2003, Donlar had sales of $4.2 million.
The newly acquired assets include a broad portfolio of environmentally friendly technologies and products, 52 U.S. and 139 international patents and the 65,000-square foot manufacturing plant on 40 acres of property. Donlar also has rented corporate offices and a laboratory in Bedford Park that will continue to be used by the combined companies. The net book value of the assets were placed at around $8 million for property, plant and equipment, in addition to $1.7 million for intellectual property.
The acquisition is in keeping with Flexible Solutions tradition of focusing on complementary products that are making a positive contribution to conservation and the environment, stated Chief Executive Officer Dan O'Brien. The addition of a comprehensive new line of synergistic green chemistry technologies and products significantly broadens FSI's reach into a wide array of environmental markets and positions the Company for future growth and expansion.
The water soluble products acquired by FSI utilize thermal polyaspartate (TPA) biopolymers, beta-proteins manufactured from the common biological amino acid, L-aspartic acid. TPAs can be formulated to prevent corrosion and scaling in water piping within the petroleum, chemical, utility and mining industries, as well as proteins that enhance fertilizers to improve crop yields; additives that reduce the levels of insecticides, herbicides and fungicides required for protecting crops and additives for household laundry detergents.
About Flexible Solutions International
Flexible Solutions International, Inc. (www.flexiblesolutions.com), based in Victoria, British Columbia, is the developer and manufacturer of Water$avr, the world's first commercially viable water evaporation retardant. FSI is an environmental technology company specializing in energy and water conservation products for drinking water, agriculture, industrial markets and swimming pools throughout the world. Water$avr reduces evaporation by up to 30% on reservoirs, lakes, aqueducts, irrigation canals, ponds and slow moving rivers. Heat$avr, a liquid blanket evaporation retardant for the commercial swimming pool and spa markets, also reduces humidity and lowers water heating costs, resulting in energy savings of 15% to 40%. The Company's EcoSavr product targets the residential swimming pool market.
Lincoln Partners initiated this transaction, assisted in the negotiations and acted as the financial advisor to Donlar Corp. Lincoln Partners is the second largest investment bank headquartered in Chicago, specializing in the middle-market mergers and acquisitions, private capital raising and financial recovery for global clients. The firm's fundamental commitment is to complete assignments on the best terms for clients committing hands-on attention, ingenuity and significant expertise to every transaction.