$ATWT News: ATWEC Technologies Acquires Manufacturer Assembled Products, Inc. in $2.6M Deal
Wed, November 11, 2020, 8:08 AM EST
MEMPHIS, Tenn., Nov. 11, 2020 /PRNewswire/ -- ATWEC Technologies, Inc. (OTCMKTS: ATWT) a technology company specializing in child safety, today announced it has acquired its manufacturer, Assembled Products, Inc., in a deal worth $2.6 million in cash and stock. Assembled Products has been the proprietary manufacturer of ATWEC's child safety systems, including the KV-4 Child Reminder System with RFID technology deactivation, and the new KV-X vehicle sterilization system, for the past 30 years.
"Bringing the manufacturing of our transportation safety devices in-house better enables us to respond to the growing market demand for solutions to keep bus and vehicle passengers safe," said Darnell Stitts, President and CEO at ATWEC Technologies. "Acquiring Assembled Products allows us to keep costs down and scale more quickly. Plus, by expanding into manufacturing, we can diversify the range of our offerings."
Assembled Products, Inc. is a U.S. manufacturer and designer of electronic and mechanical apparatuses. Since its founding in 1986, it has worked with major companies, including Halliburton, the U.S. Air Force, FedEx, and AutoZone.
"An exclusive partnership between ATWEC Technologies and the resources of Assembled Products will fast-track next-generation product development and bring a long-overdue higher level of safety to the transportation industry," said Glen Stevens, Operations Director at Assembled Products.
Assembled Products is currently housed in a 33,000-square-foot building in Rogersville, AL after rapidly outgrowing its 4,000-square-foot space in Memphis, TN. The company has zero liabilities and hundreds of thousands in assets. Gross sales in 2019 were approximately $1 million dollars.
Following the acquisition, all aspects of manufacturing and production will now be controlled by the ATWEC board. This deal will result in ATWEC saving approximately 75% of its production costs, which will increase margins by approximately 75% as well. That savings will be reinvested into R&D. ATWEC will also keep all Assembled Products' full-time employees on staff, including Glen Stevens who has been with Assembled Products for over 34 years.
