GlyEco (GLYE) An Acquisitions Monster: 3 NEW Deals In May Alone
Because of the “quiet period” for GlyEco’s $10 Million private placement equity raise, NBT has been restricted from broadcasting our coverage or equity research report of our FAVORITE Economic CleanTech portfolio company.
But we can report on their May acquisition spree…and it exceeded even OUR forecasts. With the 3 new acquisition deals GLYE is AHEAD of their own consolidation schedule to complete 12 regional acquisitions by year end. MMT Technologies, Inc. Enviro-Cool, LLC. Evergreen Recycling, Inc.
Why is GlyEco so loved by our NBT analysts? Massive EBITDA per share growth is the answer…as in @$24 million EBITDA on around 40 million shares fully diluted in 2013. THAT is how we get to our target price >$8 a share and 40 cents EPS estimate for calendar year 2013.
As you remember from our report, our forecast for GlyEco’s glycol recovery business in 2013 is around $50,000,000 topline revenue and @ $24 million EBITDA. Our forecast was predicated on GLYE acquiring 12 existing glycol recycling operations around North America and then UPGRADING the largest facilities with their patented GlyEco technology.
Well…with the buyout binge in May, they are HALF way home with SIX accretive acquisitions in 2012.
How will they dominate the $3.5 billion glycol recycling industry? With upgraded plants using the GlyEco Technology™ the newly acquired GLYE plants will soon be able to recover a LOT more glycol and recycle it into the high value Tier 1 quality required for resale as top grade anti-freeze. That is the holy grail—reaching critical mass of Tier 1 quality recycled glycol so the BIG names in the anti-freeze world can meet the demand for recycled anti-freeze.
Now THAT is what we call “Economic CleanTech”—meeting unmet existing DEMAND with economically recovered supply!
What is glycol again? Ethylene glycols are a liquid petrochemical produced in massive quantities and used primarily in five industries: HVAC, Textiles, Automotive, Airline and Medical. In the United States, these industries create approximately 700 Million Gallons of recyclable toxic glycol waste each year.
Although most of this toxic waste COULD be recycled into useable products, over 85% is disposed of in our surface waters -- which can have devastating results for aquatic life.
Demand continues to exceed supply for ethylene glycol, largely because of explosive growth in poly fiber manufacturing to make clothing, plastic containers, and plastic beverage bottles. This growth trend is expected to continue well into the future. (Source: ICIS Chemical News).
Moreover, recycling waste glycols presents an inventive solution to the very real glycol supply shortages and increasing costs for refinery produced materials. GlyEco Technology™ is uniquely able to process all five sources of waste glycols, opening new avenues of supply in a market beset with constrained production and ever-increasing prices. With proper handling, glycols can be recycled and reused indefinitely, creating the opportunity to utilize this valuable material as a predominately sustainable resource.
As we said in our original report, put EVERYTHING together in a bow and GLYE is a first: an extremely profitable CleanTech company with GREAT private market economics and NO government subsidies or loans—just mandates that glycol users DON’T DUMP toxic glycol in our rivers, streams, lakes and dumps.
It’s still our favorite FOR-PROFIT clean technology play! We will post full research report when we are able to do so.
About the Author
Founder and Editor-in-Chief NBTEquitiesResearch.com. Contributor and Anchor Fox News Channel and Fox Business Network. Chairman & CEO NBT Group,Inc., a boutique private capital investment bank and investor relations organization.
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