GreenMan divests Tennessee scrap tire business

Lynnfield, MA— GreenMan Technologies, Inc., a recycler of over 30 million scrap tires per year in the U.S., announced that it has entered into an asset purchase agreement with Tennessee Tire Recyclers Inc.

Under this agreement, all Tennessee contracts and certain other contracts with suppliers of waste tires and contracts to supply whole tires to certain cement kilns in the southeastern region of the U.S. have been assigned to Tennessee Tire Recyclers.

GreenMan received no cash consideration for these assignments and expects to record a non-cash loss on the transaction of approximately $918,000 associated with the write-off of goodwill relating the intangible assets assigned.

Bob Davis, GreenMan’s president and chief executive officer said, “We estimate the assumption of these contracts by Tennessee Tire Recyclers and the pending closure of our Tennessee facility in September will relieve us of obligations that have negatively contributed to our operating losses over the past several years and will positively impact our overall corporate cash flow by over $150,000 per month. We anticipate the transition of assigning all contracts to be completed within 90 days and will redeploy all remaining Tennessee equipment to other locations during that time frame.”