Jul 9 2009
SpongeTech Delivery Systems, Inc., America's Cleaning Company, (OTCBB: SPNG) is pleased to announce that the Company has acquired Dicon Technologies ("Dicon"), a company that specializes in research and development of products derived from hydrophilic urethane chemistry. The Board of Directors of SpongeTech and Dicon have approved and completed the transaction. SpongeTech acquired Dicon for $4.45 million in cash only.
The Company has immediately picked up approximately $10 million in revenues and approximately $1.5 million in pre-tax earning from the acquisition. Dicon currently sells various products including private label brands for multiple industries through established channels of distribution in the U.S., including traditional food, drug and mass market stores such as CVS, Walgreens, Kmart and Wal-mart as well as direct sales to large commercial clients; all of which SpongeTech intends to immediately utilize. In addition to the U.S. distribution, Dicon currently has distribution in Asia.
"Due to the overwhelming increase in sales and demand for our products, we felt the best interest for the Company was to acquire Dicon," said SpongeTech's CEO, Michael Metter. "The acquisition of Dicon benefits SpongeTech along multiple parallels. With this acquisition, SpongeTech will obtain the technology that we have had exclusive rights to utilize in the manufacturing of our products and enable a more efficient and expeditious R&D process for the expanding of our product lines. In addition, SpongeTech will acquire all current and future products within Dicon's portfolio."
"We are energized at the potential unleashed by the union of our two companies," commented SpongeTech's COO, Steven Moskowitz. "The growth of the Company has given us the ability to acquire Dicon without dilution. We believe that this acquisition places SpongeTech in an excellent position to maximize the value of our Company and its future."
Established in 1975, Dicon Technologies has been researching, developing and producing some of the most innovative and successful products for multiple industries including agriculture, cosmetic, household and medical. Today, Dicon is recognized as an innovator in product development, setting new standards and creating products with far-reaching implications throughout these industries. Headquartered in Black Creek, Georgia, Dicon operates a new, state-of-the-art 30,000 sq. ft. research and manufacturing facility where over 65 researchers, product development and manufacturing personnel work on multiple, current, and future products.
Dicon's President, Wayne Celia, comments, "We have always strived to create products that are not only technologically advanced but provide the end user benefits unforeseen in previous products in the marketplace. Teaming up with SpongeTech is the perfect solution to providing a strong portfolio of innovative products that management believes will blow the marketplace out of the water."