E-Waste Systems signs letter of intent
E-Waste Systems, Inc., an electronic waste recycling and reverse logistics services firm has signed a non-binding letter of intent (LOI) to acquire an end-of-life electronics company with operations located in the Southwest, Central and Western regions of the U.S. as part of its strategy.
The acquisition target is profitable and is realizing significant growth under its existing team of quality executives. The intended acquisition will provide complementary services, geographical advantages and a customer base which matches the company’s emphasis on servicing OEM’s, major retailers, large corporations and government institutions.
This LOI requires that the names of the target be kept confidential to protect customers, suppliers and employees, but will be announced as soon as the definitive agreement has been executed. Due diligence has commenced, definitive agreements are pending and closing is contingent upon, among other items, completion of two years of PCAOB qualified audits, which are nearing completion.
According to the Environmental Protection Agency, various reports in the U.S. have stated that electronic waste is growing two to three times faster than any other waste stream, with a majority coming from large businesses and institutions. With the continuing introduction of new and enhanced electronic components, hundreds of millions of obsolete hardware devices will be entering the waste stream over the next three to five years.