SAVAGE, Minn. (July 19, 2006) — Tire recycler GreenMan Technologies Inc. has sold its wholly owned subsidiary in California to its former owner, Vern Mabry, effective July 17.
The recycler said the subsidiary, GreenMan Technologies of California Inc., was formed in 2002 to acquire all the outstanding common stock of Unlimited Tire Technologies Inc., an Azusa, Calif., scrap tire recycling company in which Mr. Mabry was majority owner.
Terms of the transaction weren't disclosed.
“While we would have preferred to maintain a presence in the California tire recycling market, our California subsidiary's performance had not met expectations, and therefore we felt it was in the company's best interest to divest the subsidiary,” said GreenMan CEO Lyle Jensen. “We can now focus our efforts on maximizing performance of our core Midwestern operations in order to realize their full potential.”
Mr. Jensen added that the California divestiture and the recently announced refinancing agreement with its primary lender, Laurus Master Fund Ltd., mark the completion of two more steps in GreenMan's five-step turnaround plan. Also as part of its restructuring efforts, the struggling company moved its main offices to Savage, Minn., from Lynnfield in April.