LONDON -- (Marketwired) -- 06/24/13 -- E-Waste Systems, Inc. (OTCQB: EWSI) ('EWSI' or the "Company"), an electronic waste management services, technology and reverse logistics company and the first public pure eWaste company, announced today the closing of the acquisition of Surf Investments Ltd. ('Surf') in Irvine, CA which will operate as E-Waste Systems (CA) immediately.
"The closing of the Surf acquisition is a good milestone for EWSI due to its strategic geographic position and the solid credentials and licenses. It brings benefits immediately, and complements our core focus on branding and revenue acceleration," stated Martin Nielson, founder and CEO of EWSI.
The acquisition is expected to add $1 million in annual revenues. Surf was founded in southern California by Julie Peterson, to provide technology products and services, including repair and recycling of electronics. Over its history it has earned authorized credentials to sell, service and recycle the products of key manufacturers, including multinational and major OEM brands like Hewlett Packard, Dell, Apple, Compaq, Toshiba, Lenovo, Fujitsu and many others.
"This acquisition extends our eWaste brand and firms up our West Coast operating foundation. In advance of the closing, we actually began working with the Surf team and have already launched new customer engagements together," stated Martin Nielson, CEO of EWSI. "California is top priority for EWSI. And Surf, out of Irvine, will be of strategic importance to accelerate our broader geographic aspirations, both for the West coast and internationally. It will also help us strengthen our brand by solidifying relations with a number of other qualified recyclers with whom we and Surf have been working," added Mr. Nielson.
Los Angeles, and the State of California, is a major region for the recycling industry. The City of Los Angeles alone generates nearly 10 million tons of solid waste annually and it also has one of the highest recycling rates in the nation. Los Angeles County has an economic output of $500 billion and is the largest manufacturing center in the nation based on employment, according to the Los Angeles Economic Development Corporation. The city has adopted a 75% waste diversion target and the long-term goal of zero waste by 2025. EWSI's existing status as a portfolio company of the Los Angeles Cleantech Incubator is expected to be leveraged by this transaction.
Discarded electronics remain the fastest growing segment of the municipal waste stream and are regulated under California's Electronic Waste Recycling Act of 2003 (SB 20/50), the first law of its kind in the USA. This aligns strongly with EWSI's focus on high quality standards for the eWaste industry.
EWSI intends to retain the Surf business intact. It will operate as E-Waste Systems (CA) immediately ("EWS (CA)"). The plans for Surf under EWSI involve retaining the current revenue streams, while aggressively building the end-of-life services under the registration the company has under SB 20-50. Handling new volumes of e-waste will require larger processing space, which EWS (CA) will be looking for next. As importantly, the management of other affiliates and teaming members is expected to bring in faster revenues through the use of our technology, management and further brand expansion.
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