ABCO ENERGY ANNOUNCES LETTER OF INTENT TO ACQUIRE HVAC COMPANY
ABCO Energy, Inc, (OTCPK, “ABCE”) December 12, 2019 Tucson, Arizona. On December 10, 2019
ABCO completed negotiations and a “Letter of Intent” (LOI) to acquire was signed for the acquisition of
a Tucson HVAC company whose sales will be in excess of $1,000,000 for 2019. This acquisition
company has been in business for 40 years; sells and services both residential and commercial customers;
and has several contracts with the City of Tucson that help to even their workflow during the year. The
acquisition is expected to close by January 31,2020.
The acquisition company also has a general contractors license that will pass through to ABCO and allow
us to perform more segments of our commercial work without farming such jobs out to others. The
company has consistently shown 48% gross profit margins and is projected to bring more than $300,000
profits to ABCO at the EBIDA level. The purchase price negotiated is $300,000 and ABCO is financing
$200,000 cash and an owner’s financing of $100,000 over 5 years. This pricing represents a one year
payback on investment and eight months payback on cash invested. The acquisition company’s
construction equipment is sorely need by ABCO for our Solar jobs and with the expected steady and even
monthly cash flows from this acquisition, we hope to reduce our need for seasonal borrowing.
“We are excited about the potential of this acquisition because it gives us the knowledge and experience
to sell additional products and services including our solar powered air conditioning systems” said Mike
Mildebrandt, President. “Every home and business has air conditioning in Arizona and we intend to
knock on many of their doors. We have sold $425,000 in air conditioning service and replacements in
the last few months and this acquired team will be able to perform the work for us. We intend to acquire
more companies in the next year.
