Privately Held Environmental Company Services the Coal and Waste Water Industries with Proprietary Technology
PR Newswire
TAMPA, Florida, November 10, 2016
TAMPA, Florida, November 10, 2016 /PRNewswire/ --
MagneGas Corporation ("MagneGas" or the "Company") (MNGA) a leading clean technology company that counts among its inventions a patented process that converts renewable and liquid waste into MagneGas2® fuel, announced today that it has entered into a non-binding Letter of Intent to purchase all of the outstanding capital stock of a privately held coal combustion environmental technology company.
The coal combustion company has historically generated consistent revenue growth with meaningful profitability and has been in business for more than 20 years. The company services some of the largest utility companies in the United States, and has benefitted from very high customer loyalty. They are working with strategic partners to grow the technology platform globally and are developing international markets.
MagneGas believes there are significant synergies with this transaction related to our common customers and complimentary product offerings. In addition, MagneGas believes the coal combustion company brings multiple new customer opportunities for the MagneGas technology and related applications. It is anticipated that the transaction will close on or about January 31, 2017.
"We have identified several acquisition targets that we believe are synergistic to our mission that will add accretive value to the top line and bottom line with a focus on fundamentals. We believe that the acquisition of this coal combustion technology company will bring significant value to MagneGas through their product offerings, common marquee customers, and real world combustion expertise with power companies.
This acquisition, if closed, will be a major milestone for MagneGas in terms of revenue and growth potential. Both management teams feel strongly that the combined companies will bring significant shareholder value," stated Ermanno Santilli, CEO of MagneGas Corporation.