Greentech Lead Europe: E-Waste Systems, Inc. (EWSI), an electronic waste management and reverse logistics company, has signed an agreement to acquire Surf Investments, an Irvine, CA-based e-waste collector and mobile computing specialist.
The acquisition is expected to add $1 million in annual revenues for E-Waste Systems.
Surf, a registered collector of eWaste in the State of California, is recognized as a warranty authorized center for repair, returns, and resale by major OEM manufacturers including Hewlett Packard, Toshiba, Lenovo, Compaq and Fujitsu.
Los Angeles and the State of California is a growing market for eWaste recycling. The city has adopted a 75 percent waste diversion target by 2013 and the long-term goal of zero waste by 2025. Furthermore, studies have shown that the city of Los Angeles alone generates nearly 10 million tons of solid waste annually and it also has one of the highest recycling rates in the nation.
“This acquisition extends our eWaste brand and sets our West Coast operating foundation,” stated Martin Nielson , CEO of EWSI. “The California market is a top priority for EWSI and this acquisition will push our eWaste brand deeper and the local presence allows greater efficiencies for our revenue acceleration initiative.”
Discarded electronics are the fastest growing segment of the municipal waste stream and are regulated under California’s Electronic Waste Recycling Act of 2003, the first law of its kind in the nation. According to the Los Angeles Economic Development Corporation, Los Angeles County has an economic output of $500 billion and is the largest manufacturing center in the nation based on employment.
“This acquisition is a milestone for EWSI due to its strategic geographical position and the solid credentials and licenses it owns. It brings benefits immediately and complements our branding, technology and revenue acceleration core focuses,” stated Martin Nielson, EWSI’s CEO.
The transaction involves acquiring all of the shares of Surf. Upon completion of the transaction, Surf, which presently does business as ‘CPU’, will transition to operate under the eWaste Systems brand name from its Irvine, California location.
All employees will be retained and EWSI intends to use the Irvine unit as a strategic operational hub for Southern California. Julie Peterson Mindiola , founder of the company, will stay on in an executive capacity. Kimberly Crew, the majority shareholder and president of Surf who is based in the Philadelphia area, will join the EWSI Advisory Board.
Crew will be joining EWSI’s advisory board while still managing three other ventures, including Lighthouse Ventures, an investment and advisory firm.