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Florida Wastewater Company Acquires Vac and Jet Services
HOUSTON, TX -- After announcing the acquisition of one of Florida's largest wastewater treatment companies last week, Orlando-based Freedom Environmental Services, Inc. (PINKSHEETS: FRDM) has acquired yet another waste water specialty business, upping annualized sales 15% in the process.
Freedom CEO Michael Borish said management believes this company's service offering will enhance the Company's annualized sales "beyond its current level due to the niche market it serves." This acquisition "will optimize our waste water solutions," said Borish. The Freedom Environmental founder went on to say that management believed the acquisition would be "key" to expanding.
FRDM acquired Vac and Jet Services LLC in an all-cash transaction. Terms of the purchase were not disclosed, though Freedom did note that it was generating $700,000 in annualized sales.
With the acquisition comes entry to major brand customers, such as Coca-Cola and others, which Freedom sees as a valuable addition to its already extensive client base throughout Central Florida.
Freedom was featured in an AXcess News story last week after acquiring Brownies Wastewater Solutions, Inc. At that time it was noted that the Company may be looking to acquire other waste water treatment providers in a move to expand the business statewide with an eye towards regional expansion in the coming years. But apparently Borish is looking to accelerate the process and take advantage of the marketplace. Borish hinted in today's announcement that Freedom was looking to now expand into Northern Florida in addition to its move in buying Brownies. The expanded service mix is also seen as a plus due to the niche it serves.
According to a report by The McIlvaine Company the market for waste water services in Florida is $74 million and growing. With the acquisition of Vac and Jet Services LLC, Freedom's share of the marketplace is now more than 7.75%, which Borish believes will increase further still due to the specialty waste water treatment services Vac and Jet provides.
Freedom also announced earlier this week that it would begin shipping tanker cars of "yellow grease" to a biofuel manufacturer. The biofuel, or "Freedom Fuel," as Borish coined it, will not only provide additional cash flow for FRDM but also fuel its growing fleet of waste water treatment vehicles.
The yellow grease is collected from restaurants across Florida and sold in bulk to the biofuel processor. Borish estimated that sales of yellow grease could add as much as $1 million in additional revenue to the bottom line of the company, but because of the acquisition of Brownies the benefits of generating a recycling service out of restaurant waste grease would also provide a green fuel source for its fleet of vehicles that Borish says will reduce operating costs while adding to the bottom line. Sort of a 'perfect storm' in the Florida environmental sector.
Smallcap publisher, TheGreenBaron.com, agreed with Barish calling the 'freedom fuel' news a "market gainer." In its newsletter to members, TheGreenBaron wrote: "Freedom's plan to turn trash into cash is about to pay off."