NASV.pk (.17) National Automation Services, Inc. Announces Closing of Second Acquisition as Part of Its National Acquisition Program Wednesday, January 09 2008 - 8:58
NASV $0.17 $0.04 (%30.77)
LAS VEGAS, NV -- (MARKET WIRE) -- 01/09/08 -- National Automation Services, Inc. (PINKSHEETS: NASV) www.n-a-s-inc.com is pleased to announce that it closed on December 26, 2007, the acquisition of 100% of the stock of Intecon Controls, Inc. ("Intecon"), located in Phoenix, Arizona, for a combination of a promissory note and restricted stock worth $1.75 Million. NASV intends to refinance the note through a new debt facility which it is presently negotiating, and expects to complete the new debt financing within the next 60 days. Should the refinancing not be completed within this timeframe, which is not expected, the shareholders of Intecon retain the right to rescind the acquisition.
Intecon (www.intecon-az.com), a 9-year-old company, specializes in engineered controls and UL Certified Panel Facility and Systems Integration. Intecon services the Arizona industrial and municipal market. As part of the agreement, the current management of Intecon have agreed to continue to remain senior management with Intecon for a minimum of two years after the closing.
Intecon was established by its present shareholders in 1998 and presently employs 15 engineers and staff. The company historically averages between $2.8 and $3.5 million in gross revenues, with net profit margins of between 20% and 25%. Customers Intecon presently serve.
Since the execution of the agreement to purchase Intecon in November, the management of NASV and Intecon have been working together on the synergistic expansion plan of Intecon, which has already produce positive tangible results.
NASV estimates that there are cost synergies between ISS, another subsidiary of NASV, and Intecon of immediate cost savings of 15 to 20% in reduced overhead, as well as accounting and legal costs and increased purchasing power with common vendors, which should fall immediately to the bottom line of NASV on a consolidated basis. NASV anticipates doubling the revenues of Intecon in 2008 through the introduction of national clients available to NASV who have the need of localized products and services in the Phoenix market, as well as through increased marketing of Intecon services throughout Arizona.
Robert Chance, CEO of National Automation Services, Inc., in announcing the closing of the acquisition, stated: "We are very excited about the opportunity Intecon brings to our Company in our continuing effort to build a nationwide network of Automation and Controls Companies. The Management of Intecon share our vision of developing an integrated company, with local subsidiaries, to handle nationwide contracts for the Industrial and Municipal Markets, and to create shareholder value through higher prices per share and, ultimately, through a sale of the integrated company to a larger industry participant. Intecon Controls is exactly what we are looking for in the way of acquisition targets for our nationwide expansion, since it has seasoned management which stays with the company; a solid base of clients, and stable income from year to year; and the ability to expand rapidly through the integrated efforts of the Company. We are presently reviewing a number of automation companies in the fragmented automation controls industry with a goal of completing a minimum of 5 additional acquisitions in 2008. All such acquisition targets have similar attributes to those that attracted NASV to Intecon. We welcome Intecon and its management and staff, and look forward to the contributions we will make together towards our Company goals."
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National Automation Services, Inc. is a public holding company for specialized automation control companies located in the Southwestern United States. The Company presently owns 100% of the stock in Intuitive System Solutions Inc. ("ISS") of Las Vegas, Nevada, and Intecon Controls of Tempe, Arizona. Since its formation National Automation Services has positioned itself as a leading system integrator and UL Certified provider throughout the U.S. The Company has evolved to focus on two district lines of business. Each of these lines is linked to the foundation of the business -- integrated and automated systems controls.
The Company currently focuses on:
Industrial Automation and Control. With an experienced staff of electrical and control engineers, as well as project managers, with over 100 years combined experience in industrial automation and controls. The Company's business is currently focused in Nevada, Arizona and Utah, but it intends to expand through internal growth and acquisitions into California, Texas and New Mexico and other western states, as well as nationwide in 2008.
Automation Manufacturing. The Company is a certified Underwriters Laboratories Panel fabrication facility. This nationally recognized regulatory body provides NASV with significant marketplace credibility for custom control panel assembly and fabrication to its clients.
DISCLAIMER: Should NAS fail to pay this note by the due date, it will require an extension by the acquisition to avoid cancellation of the transaction. Financing of this transaction subject to scrutiny by a Lender or Lending Institution, which may or may not be acceptable. NAS can not be held liable for failure by any or all sources to fund this transaction.
FORWARD-LOOKING STATEMENT: This press release contains forward-looking statements, including expected industry patterns and other financial and business results that involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ materially from results expressed or implied by this press release. Such risk factors include, among others: the sustainability of recent growth rates in the automation controls industry; the positioning of NASV in the market; ability to integrate acquired companies and technology; ability to retain key employees; ability to successfully combine product offerings and customer acceptance of combined products; general market conditions, fluctuations in currency exchange rates, changes to operating systems and product strategy by vendors of operating systems; and whether NASV can successfully gain market acceptance. Actual results may differ materially from those contained in the forward-looking statements in this press release.
CONTACT INFORMATION
National Automation Services, Inc. Bob Chance 2053 Pabco Henderson, NV, 89011 (702) 642-7720
Investor Relations Contact: David Donlin The Cervelle Group 238 N. Westmonte Drive Suite 210 Altamonte Springs, FL 32714 (407) 475-9966
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