SCOTTSDALE, Ariz., Jan. 20, 2010 (GLOBE NEWSWIRE) -- EGPI Firecreek, Inc. (OTCBB:EFIR) ("FireCreek") announced today that it has closed into escrow the acquisition of SouthWest Signal Corporation ("SWSC") effective as of December 31, 2009, by making a One Million Dollar ($1,000,000.00) deposit to the sellers. The balance of the purchase price of Two Million Three Hundred Thousand Dollars ($2,300,000.00) is due on or before February 25.
SWSC located in Tampa, Florida was established in 2000 and is engaged in all facets of the Multi-Billion Dollar United States Intelligent Transportation System / Department of Transportation Industry. The company also serves leading private sector clients such as Wal-Mart, Lowes and Home Depot in addition to several large Private Developers. In addition to Intelligent Transportation System projects SWSC participates in general bids for city, county and state funded DOT contracts. The Audited results for the years ended December 31, 2008 and 2007 reflected Revenues of $14.3MM and $14.2 MM respectively, with EBITDA of $1.2MM for the years ended December 31, 2008 and December 31, 2007 $1.1MM. For the fiscal year ended December 31, 2009 the company expects Revenues exceeding $10 million dollars and EBITDA of approximately $425,000.00. Currently SWSC is announcing an increase in its Backlog to $11.4 million for work to be completed in the coming calendar year. Management expects revenues for 2010 to exceed $15 million due to the increase in State and Local Government spending from the Stimulus Initiative initiated by President Obama’s administration as demonstrated by SWSC signing three new contracts. These projects included a new maintenance contract with the City of Tampa.
Over the past nine years SWSC has created an experienced project management team with over 50 employees specializing in: Signalization, Lighting, Signage and Intelligent Traffic System installation and maintenance. These are all areas targeted for increased Stimulus spending by the Obama Administration. The company expects the increased sales and bidding activity to continue as the Obama Administration continues to fund infra-structure projects to assist in the economic recovery and increase employment.
Dennis Alexander, Chairman and CEO, stated, "We anticipate SouthWest Signal to provide an additional $15 to $17 million dollars in revenues to our financial statements, and EBITDA approaching or exceeding its historical average of $1.4 million." He also stated, "Between SWSC’s stellar reputation in the industry and their current $11.4 million dollar backlog we expect this latest acquisition to bolster our strength and credibility within the DOT construction industry as we continue to vertically integrate well established companies that have consistent revenue streams and positive earnings. FireCreek initiated the vertical roll up strategy for acquiring profitable established targets within ITS / DOT industry to take advantage of the recovery program initiated by the Obama Administration. Both our initial acquisition of South Atlantic Traffic Corporation and the acquisition of SWSC are proving out the value proposition of our business plan."
The final funding is expected to take place on February 15, 2010.
About EGPI Firecreek, Inc.
EGPI Firecreek, Inc.'s business and acquisition strategy is focused on both the vertical integration of enterprises serving the DOT Construction and Intelligent Traffic System markets alongside its wholly owned subsidiary M3, Lighting, Inc. (M3), and on oil and gas production with an emphasis on acquiring existing fields with proven reserves, the rehabilitation of potentially high throughput oilfields, resource properties and inventories, through its wholly owned subsidiary Energy Producers, Inc. (Energy Producers). EGPI Firecreek, Inc. is also looking to expand into Alternative energy sources as well as industries in the energy field. Other companies in the oil sector include Exxon Mobil, Pantina Oil and Gas Inc., Frontier Oil Inc. and Cabot Oil & Gas Inc.
The EGPI Firecreek, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6259 ;
Safe Harbor
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