It is here in the last news release. Red wants it to sound like it was some kind of rift or bad thing but in actuality they resigned because they were not needed at EUO but at SICPA now that GFI is owned by SICPA. They left EUO to work with GFI - SICPA. Good to know Rowlands made sure his people were looked after. Kind of thought with all the DD you do that one snuck by you,,,,
Eurocontrol closes sale of Global Fluids to SICPA
2016-01-05 10:24 MT - News Release
Mr. Bruce Rowlands reports
EUROCONTROL CLOSES SALE OF GLOBAL FLUIDS INTERNATIONAL (GFI) S.A. TO SICPA
Eurocontrol Technics Group Inc. has sold Global Fluids International (GFI) SA to SICPA Finance SA, a subsidiary of SICPA SA, each a privately owned company based in Switzerland, in exchange for cash and postclosing earn-out payments closed effective Jan. 4, 2016. At closing, the company received $16-million less the $250,000 deposit received by the company on signing of the letter of intent in August, 2015, less $395,595 in transaction payments, less $984,128 in settlement of loan amounts owing by Eurocontrol to certain former shareholders of GFI and a working capital adjustment of $47,489. Going forward, Eurocontrol will also receive 5-per-cent earn-out payments on all future GFI contracts, inclusive of both marker and logistics, for a period of six years with contracts signed during the fourth through sixth years being paid until the third anniversary of such contracts with a minimum guarantee of $1.5-million per year for six years, being $9-million in the aggregate. The company will receive the minimum earn-out payments of $1.5-million on a semi-annual basis and additional earn-out payments calculated on 5 per cent of the gross revenue of future GFI contracts, net of the minimum earn-out payments made annually.
Eli Zahavi, Gadi Gonen and Michael Rose have resigned as directors of the company. Doron Reinis, the current chief executive officer of Xenemetrix, has been appointed chief operating officer of Eurocontrol to replace Mr. Gonen who pursuant to the sale of GFI has resigned from all positions with the company.
Bruce Rowlands, chairman and chief executive officer of Eurocontrol, stated: "The closing of this sale transaction with SICPA is a very important milestone in Eurocontrol's evolution and I would personally like to thank Gadi Gonen, Michael Rose and Eli Zahavi for their commitment and important contributions to Eurocontrol over the past 10 years. We all look forward to supporting the new SICPA/GFI combination in the future as new fuel marking programs are rolled out around the world."
Gilles Leraille, executive vice-president, business development of SICPA, stated: "We are very pleased to have finalized the purchase of GFI. This acquisition extends the range of the SICPA Group's product marking and 'track and trace' portfolio. It complements and completes the scope of SICPA's unique offering to government clients worldwide: comprehensive solutions aimed at enhancing excise tax collection capability, tools to protect local economies, and support health and environmental control policies. GFI's cutting-edge capability to mark oil products at the molecular level effectively works as an in-product tax stamp that cannot be altered or copied providing governments with a sophisticated tool to tackle fraud in the oil sector. SICPA/GFI's oil marking activity will be managed from SICPA headquarters in Lausanne where GFI will benefit from the strong [research and development] and organizational support of the SICPA Group in Switzerland and globally -- something we view as essential to maintaining and further developing Petromark technological lead and international offering."
We seek Safe Harbor.
News 
Market Data 
Discover 
