HOUSTON, TX – July 11 (SEND2PRESS NEWSWIRE) — The Lyamec Corporation announced today that Grifco International’s (OTC Pink Sheets: GFCI) acquisition of Global Oil Tools for $4.5 million in cash and stocks has been finalized after intense negotiations involving Global Oil Tools, The Lyamec Corporation and American Finance Corp.
The combination of cash and stock allowed Grifco to negotiate better acquisition terms than that of the previous LOI in February, 2005. The new terms provide a superior transaction for Grifco’s share holders. Grifco acquired Global assets without having to assume the liabilities of approximately $840,000.00 USD. This strategic acquisition is an attractive fit with Grifco’s overall operations and capabilities.
The acquisition of Global Oil Tools enhances Grifco’s ability to realize significant economies of scale by targeting synergies in a number of operations and corporate functions, including: cost savings, productivity, opening new markets, and accretive on earnings and cash flow per share basis, which creates long term investment value for shareholders.
Additionally, under a marketing development and marketing agreement with The Lyamec Corporation, Grifco has positioned itself for a 55% stake ownership of the technology transfer, manufacturing and distribution rights for Libya, The Middle East, Africa, and Azerbaijan. In connection with this transaction, Grifco would now directly benefit from a 20 million USD order originally set to kick start the Libya manufacturing facility in Libya. The Libya manufacturing facility currently approved for implementation under Libya’s Law #5/1997, will pave the way for Grifco to access and expand its international sales by tapping a 400 million USD market. The strategic manufacturing facility is staged to be one of the most advanced manufacturing and distribution facilities in all of Africa.
Overhauling and modernizing Libya’s deteriorating oil fields and restoring them to their previous production levels after 25 years of U.S. sanctions presents an excellent opportunity for Grifco to sell its oil, tools, coil tubing and jet motor units. As is already expected, rentals of these advanced patented technologies have built a backlog of advance inquiries to utilize these units. The long awaited delivery of these items has attracted a wide array of Libyan representation and rental outlet requests to manage the sought after technology.
The Lyamec Corporation, a merchandising, distribution and marketing company with advanced specific market targeting and market campaigning capabilities, is leading the promotion of Grifco’s new technologies in the region. “I sincerely thank R. Raymond at Lyamec, and Ben Gala at American Finance for their efforts. We truly would not have been able to put this deal together with out their dedication,” said W.J. Barnhill of Global Oil Tools in a prepared statement. “They are the most visionary and efficient group I have ever met up with. I would also like to thank CEO Jim Dial for his dedication and candor. I feel that with his strength and knowledge at the helm, everyone will be better served in the long run. All of us bring knowledge and history into this win/win relationship. Now that we are share holders of Grifco International, we will be vigorous in ensuring that we are running a tight ship.”
Additionally, American Finance Corp, who owns 20% of The Lyamec Corporation, has entered into agreement to provide export facilitation to help Grifco sustain the supply and commercial marketing aspects of the jet motor units. Further, American Finance Corp. has been retained by Grifco International to provide access to more than 40 Million USD in financial support in order to promote and export U.S. products to the contracted markets.
For more information, contact: R. Raymond, of Lyamec Corporation, +1-281-599-8990, rg @ lyamec.com.