Acquisition reduces costs, expands IP portfolio and boosts revenue
TORONTO, Nov. 2, 2011 /CNW/ - Innovative Composites International Inc.
(TSX-V: IC) ("ICI" the "Company"), announced today that it has
completed the previously announced purchase of the assets of Eleison
Composites LLC ("Eleison"), a manufacturer of fiber reinforced
thermoplastic skin material which is utilized in all ICI products.
The Eleison acquisition allows ICI to control supply of a strategic raw
material that is used in all its products. In addition, patents
formally held by Eleison allow for the utilization of recycled
Polyethylene Terephthalate ("PET") and other recycled polymers, in the
manufacture of thermoplastic skin and core materials. According to the
U.S. Government Accountability Office, approximately 1 million tons of
PET water and soft drink bottles end up in landfills annually, making
it a readily accessible and low cost raw material for ICI products.
The Eleison equipment will be integrated in the ICI production lines in
the Sault St. Marie and South Carolina facilities and will result in a
significant reduction of costs for all ICI products. Eleison was on
target to record approximately US$2 million in annual sales for 2011
and ICI expects the acquisition to boost revenue as it is continuing to
ship products to former Eleison customers.
"This acquisition not only allows us to reduce costs, but also ensures
that we stay ahead of any potential competition. ICI now has the IP and
technology to be the lowest cost producer of the fiber reinforced
thermoplastic skin and has eliminated our dependency on a raw material
supplier," said ICI President and CEO Terry Ball. "Vertical integration
has always been an integral part of our strategy and the ability to
utilize recycled plastics in the manufacturing process should
significantly strengthen ICI's position in all our target markets."
About Innovative Composites International Inc.
Headquartered in Toronto, Canada Innovative Composite International
(TSX-V: IC) is a high tech engineering and manufacturing company that
is successfully commercializing a patent protected line of
state-of-the-art composite products targeted at the multi-billion
dollar transportation and affordable housing markets.
Led by a team of commercialization experts ICI has adopted a tier two
business model: it designs and manufactures game-changing products and
partners with established companies in its target markets to utilize
their sales channels for faster product roll-out.
This strategy and the superior characteristics of the products have
resulted in rapidly growing sales in both markets and opened up
opportunities that could lead to large scale contracts on an ongoing
To find out more about ICI please visit our website at: www.innovativecompositesinc.com
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
"Statements made in this press release include forward-looking
statements that involve a number of risks and uncertainties. These
statements relate to future events or future performance and reflect
management's current expectations and assumptions. A number of factors
could cause actual events, performance or results to differ materially
from the events, performance and results discussed in the
forward-looking statements, such as the economy, generally, competition
in its target markets, the demand for ICI's products and the
availability of funding. These forward-looking statements are made as
of the date hereof and ICI does not assume any obligation to update or
revise them to reflect new events or circumstances. Actual events or
results could differ materially from ICI's expectations and
SOURCE Innovative Composites International Inc.
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