SCOTTSDALE, Ariz., Nov. 18, 2009 (GLOBE NEWSWIRE) -- EGPI Firecreek, Inc. (OTCBB:EFIR) announced today information regarding the strategic partnerships formed with its recently acquired subsidiary, South Atlantic Traffic Corporation ("SATCO"), a Florida corporation, and a manufacturing/engineering company specializing in transportation industry products, which operates in the Southeastern United States.
EGPI through its M3 unit has been successful in aggressively pursuing acquisitions and strategic alliances in the DOT construction industry on Federal and State levels in order to expand and vertically integrate its business in 2009.
SATCO recently formed a partnership with a manufacturing/engineering company in an effort to optimize fabrication and engineering capabilities as well as SATCO's presence in the contractor and distributor market. Together, the two plan to be the premier resource provider for traffic solution needs. This recently formed relationship between SATCO and the manufacturing/engineering company enhances EGPI's ability to build on this integrated structure while further increasing the Company's capabilities and resources. This will also allow the company to operate more cost effectively and efficiently. The partnership is expected to add up to an additional $7 million in annual revenue for SATCO.
Through this partnership, the manufacturer is being represented by SATCO in several market categories, including: Strain Poles, Mast Arm Poles, Camera Poles, Overhead sign structures and Toll Gantry's.
The partnership between the manufacturer and SATCO is exclusive in the following states: Georgia, South Carolina, North Carolina, Tennessee, Alabama, Mississippi, Louisiana and Texas. Both the manufacturer and SATCO bring different products and specialties to the table that will enable this partnership the ability to deliver the best products to the customer.
As previously reported, EGPI recently finalized its acquisition of SATCO, making it the Company's newest wholly owned subsidiary. SATCO has been in business since 2001 and has several offices throughout the Southeast United States. Last year they reported nearly $15 million in annual revenues with a positive EBITDA. The acquisition also added an estimated $1.5 million in assets to the Company's balance sheet.
This manufacturing/engineering company has been a trusted name in quality-engineered structures since 1948. They have the personnel, facilities and experience to provide a wide variety of products needed for transportation structure projects. The company has developed a reputation for delivering quality products at a competitive price while utilizing over 300,000 square feet of manufacturing and galvanizing facilities located in the state of Illinois. The manufacturer's state of the art equipment and facility will now give SATCO the ability to fabricate the most difficult projects with accuracy and reliability while ensuring the most cost effective methods available.
Dennis Alexander, CEO and Chairman of EGPI Firecreek, stated, "We are very excited at the opportunities that this new partnership brings to our latest wholly owned subsidiary. As anticipated, SATCO continues proving themselves as an outstanding enterprise and we feel very fortunate to have them working alongside of our M3 unit. He also stated, "The opportunities that are now available to us through this unique partnership will reflect in our ability to continue exponential growth through a recessive economy."
About EGPI Firecreek, Inc.
Before the decision to transition and embark on an acquisition strategy centered on the vertical integration of enterprises serving the DOT Construction and Intelligent Traffic System markets, through its wholly owned subsidiary M3, Inc., EGPI Firecreek was historically focused on oil production with an emphasis on acquiring existing oil fields with proven reserves, the rehabilitation of potentially high throughput oilfields, resource properties and inventories on an international basis through the wholly owned subsidiary Energy Producers, Inc. ("Energy Producers"). EGPI Firecreek, Inc. is also looking to expand into Alternative energy sources as well as industries in the energy field. Other companies in the oil sector include Exxon Mobil, Pantina Oil and Gas Inc., Frontier Oil Inc., and Cabot Oil & Gas Inc. through Energy Producers as well.
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Safe Harbor
This release contains statements that constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements appear in a number of places in this release and include all statements that are not statements of historical fact regarding the intent, belief or current expectations of EGPI Firecreek, Inc., its directors or its officers with respect to, among other things: (i) financing plans; (ii) trends affecting its financial condition or results of operations; (iii) growth strategy and operating strategy. The words "may," "would," "will," "expect," "estimate," "can," "believe," "potential" and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond EGPI Firecreek Inc.'s ability to control, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors. More information about the potential factors that could affect the business and financial results is and will be included in EGPI Firecreek, Inc.'s filings with the Securities and Exchange Commission.