ABCE 182 Million Float + huge updates pending. ABCO Energy Announces Letter of Intent to Acquire HVAC Company
TUCSON, AZ / ACCESSWIRE / December 13, 2019 / ABCO Energy, Inc, (OTC PINK:ABCE): 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.
(ABCE) ABCO Energy Subsidiary ABCO Solar Buys an Office and Warehouse Building for Tucson Operations 12:57 PM ET 1/7/20 | Dow Jones Related Quotes
3:59 PM ET 1/22/20 Symbol Last % Chg ABCE 0.00 -34.48% Real time quote.
Tucson, Arizona--(Newsfile Corp. - January 7, 2020) - On December 31, 2019, ABCO Energy, Inc. (OTC Pink: ABCE) ("ABCO") completed negotiations, financial arrangements and closed on the purchase of a 4,800 square foot office and warehouse building located on one/half acre of paved land on one of Tucson's busiest streets. This property will be more than adequate to house both the Solar business (Now 3600 SF and the HVAC business (now 2000 SF) including our previously announced acquisition of a Tucson HVAC service and equipment supplier. The land and outbuildings will accommodate all of our equipment.
The acquisition was priced at $325,000 and the financing was spread over a twenty-year mortgage based on a 20 [20] year amortization and a balloon payment at the end of five (5) years. The monthly payment is one/half of our current rent on both businesses. The property will require repair, but all improvements will add to the current valuation. ABCO will be able to do almost all of the repairs with current employees. We believe the land is worth more than the entire property price. The property is centrally located on North Alvernon Street, close to the center of the Tucson Metropolitan area. We feel very fortunate to find and close on this property at a time when office/warehouse occupancy has reached 99% for this type of facility.
Figure 1: ABCO Solar New Office and Warehouse Building
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This property will add to our owned assets and improve our balance sheet at December 31, 2019," said Michael Mildebrandt, President of ABCO Energy, "and it is an excellent location to advertise our businesses on a busy street."
The Company will move its operations into the new building as improvements allow and our leases expire or are subleased on our current property.
The HVAC subsidiary to be acquired will be relocated to the property as soon as we close on the funding for the acquisition of this operating company.
About ABCO Energy
ABCO Energy, Inc. is a commercial and residential installer of Photovoltaic (PV) solar systems, LED lighting solutions and HVAC products and services. ABCO Energy, Inc. is a Nevada corporation, which maintains offices located in Tucson and Phoenix, Arizona. ABCO is a fully reporting public company trading under the symbol ABCE. Since its inception in 2008, ABCO Energy has taken great pride in delivering quality solar installations and has a reputation for outstanding customer service.
Safe Harbor Statement
Note: Certain statements in this news release may contain "forward-looking" information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-5 under the Securities Act of 1934 and are subject to the safe harbor created by those rules. All statements, other than the statements of fact, included in this press release may include forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will be accurate and actual results and future events could differ materially from those anticipated in such statements. ABCO undertakes no obligation to update forward-looking statements to reflect subsequently occurring events or circumstances or to reflect unanticipated events or developments.
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