NuEarth Corporation (NUEC)

[SD1527]

"NuEarth Corp (OTCPK: NUEC) Acquires $4M Green Cleaning Company, Boosts Top-Line by $7.5M"

Link: http://www.atomicpennystocks.com/index.php/330

NuEarth Corporation (OTCPK: NUEC) hit the news-wire today with a major announcement that it has acquired AB Technology, SA of Lokeren, Belgium. (AB Tech), a developer of “Green” cleaning solutions. According to the press release, which can be viewed HERE, “AB” logged more than $4M in sales during 2009 and NUEC management expects the synergies between NuEarth and its new business unit to yield $2.1M to its bottom line while boosting top-line sales by $7.5M.

The deal substantially bolsters NUEC’s “Green” cleaning solution portfolio and sales potential and also greatly expands the company’s global footprint thanks to AB’s entrenched position in the European marketplace.

NuEarth’s Products Have Massive Future Potential BEFORE The AB Acquisition Is Factored Into the Equation!

According to a recent “white paper” on the ability of NuEarth‘s NuSoil and Aquasolve products to slow desertification, the market exposure for these products is expected to exceed $230 Billion over the next decade. While my search for an AB Tech website or info on its products online other than what’s stated in today’s PR (green cleaning and paint strippers), it appears that AB plays in a very lucrative market.

According to natural goods retailer Seventh Generation, the market for natural household cleaning products has blossomed to $100M over the past 5 years and is growing by 18% to 25% annually. Clearly, the world is waking up to the fact that the way we’ve been cleaning isn’t as clean as we originally thought. NuEarth has embraced this fact and appears to be poised to capitalize on the trend towards increased adoption of eco-friendly cleaning products for both household and industrial applications.

Value-Proposition Associated With AB Acquisition:

Today’s news release indicates that AB Technology was founded in 1982 and provides a unique line of biodegradable cleaners and strippers that provide a 70% over solvent-based products and an additional 80% savings over solvent-based solutions when chemical waste prevention is taken into account.

Run-Down Of NuEarth’s Current Product Line:

NuEarth is already the U.S. distributor for a number of innovative environmentally friendly agricultural and construction products including:

NuSoil: An organic , non-polluting fertilizer additive that transforms non-productive soil into productive land by altering its thermal conductivity and improving its ability to retain moisture)

AquaSolv: Another non-polluting, organic fertilizer, this Polyacrylamide represents a compelling solution to the shortage and rising cost of irrigation water and the rising cost and problems associated with chemical-based fertilizers.

Dustblocker: A bio-degradable and environmentally safe dust abatement product used by road and construction firms to help reduce equipment damage and road deterioration caused by excessive dust. The product has gained traction in recent years due to its ability to reduce the need for water used to remove dust from roadways and improve visibility on construction sites as well as mineral mines and other construction situations where excessive dust is an ongoing nuisance.

Roadbinder: This eco-friendly polymetric material helps expedite the sealing process for road paving projects on roadways and mines. Its main value-proposition is its ability to reduce time and costs associated with building and maintaining sealed and un-sealed roadways.