Fortran Corporation (OTC: FRTN) said it has agreed to purchase New TPI, LLC, a North Carolina Limited Liability company owning 80 percent of the corporate stock of Tower Performance, Inc.
TPI is a New Jersey corporation with average gross annual revenues of USD13,600,000 and average annual gross profits of USD3,500,000 per year over the last five years.
Upon completion of the sale and transfer of 100 percent of NEW TPI, LLC´s ownership to Fortran, the transaction is expected to increase shareholder equity value and likely will be accretive to Fortran´s earnings.
Fortran´s Chief Executive Officer, Douglas W. Rink (Rink) believes that the transaction is consistent with the Fortran´s goal to acquire businesses intended to grow and diversify Fortran.
Pursuant to Stock Purchase Agreement, Rink became TPI´s Chairman of the board and Vice President. Further, Fortran´s Chief Financial Officer Richard C. Wilson became a director and Treasurer of TPI.
Effective immediately, Rink through ownership control of New TPI, LLC controls the vote of 80 percent of TPI´s voting stock. Stock Purchase terms include terms pursuant to which NEW TPI, LLC may acquire the remaining 20 percent stock of TPI within three (3) years. TPI´s senior management has agreed to remain with TPI for up to three years.
TPI has offices in New Jersey, Texas, Arkansas, Pennsylvania and Kansas. Tower Performance can quickly respond cooling tower needs anywhere in the country. Its clients include major chemical companies, oil and gas refineries, utilities, air separation companies and industrial plants.
Fortran is a communications system integrator through its subsidiaries, NTC, B & L Telephone, LLC, CCI-Telecom, Inc., Fortran Communications, Inc. and Wynncom, Inc. It is dedicated to designing, sourcing, implementing and maintaining communications solutions for business and governments.