TexCom Announces Sale
HOUSTON, April 22, 2014 /PRNewswire/ -- TexCom, Inc. (OTC Pink: TEXC)(the "Company" or "TexCom"), an environmental services company serving the oil and gas industry, today announced the sale of substantially all of the assets of MB Environmental Services, LLC ("MBES") for $15.8 million. TexCom owns 83.2% of MBES and will realize approximately $11 million from the sale, after income taxes. Texcom has also retained the working capital associated with MBES which should provide up to an additional $500,000 for the Company. The proceeds will be used to retire debt and fund the acquisition of other properties.
The sale of the property now frees Texcom of several contractual obligations that were associated with MBES and will allow the Company to pursue an aggressive growth strategy, which previously was severally restricted.
"TexCom is now free to expand and grow its oil and gas and NORM waste disposal operations, and in fact, is working on several targeted property acquisitions," stated Bob May, CEO and President. "While the MBES property has generated significant profits, we believe we can use the proceeds to acquire properties with better long term potential."
WoodRock & Co. and Rock House Capital Advisors acted as financial advisors to TexCom on the transaction.
About TexCom, Inc.
TexCom, headquartered in Houston, Texas, is a growth-oriented environmental services company with a primary focus on the disposal of nonhazardous wastes generated by the oil & gas industry. For more information, please visit www.texcomresources.com.
This press release and the presentation referenced above may contain forward-looking statements, including information about management's view of TexCom, Inc.'s future expectations, plans and prospects. In particular, when used in the preceding discussion, the words "believes," "expects," "intends," "plans," "anticipates," or "may," and similar conditional expressions are intended to identify forward-looking statements. Any statements made in this news release or such presentation other than those of historical fact, about an action, event or development, are forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors, which may cause the results of TexCom, Inc., its divisions and concepts to be materially different than those expressed or implied in such statements. Unknown or unpredictable factors also could have material adverse effects on TexCom's future results. The forward-looking statements included in this press release and the presentation are made only as of the date hereof. TexCom cannot guarantee future results, levels of activity, performance or achievements. Accordingly, you should not place undue reliance on these forward-looking statements. Finally, TexCom undertakes no obligation to update these statements after the date of this release, except as required by law, and also takes no obligation to update or correct information prepared by third parties that are not paid for by TexCom.
SOURCE TexCom, Inc.