Innovative Composites Signs an Option Agreement to Acquire Eleison Composites

31 May 2011

Innovative Composites Inc (ICI) has entered into an option agreement to purchase the assets of Eleison Composites, a current ICI supplier.

The integration will result in a reduction in the material cost of all ICI products which in turn would enhance margins and allow ICI to compete in lower price segments of certain markets. Eleison holds six patents and is on pace to generate approximately USD $2 million in revenue in 2011, net of sales to ICI. This transaction is the first step in ICI's vertical integration strategy and would only close subject to ICI securing a major housing contract in the near future.

""Vertical integration is one of the keys to our continued growth because it not only provides cost efficiencies, but also eliminates our dependency on raw material suppliers,"" said ICI President and CEO Terry Ball. ""Eleison is an ideal acquisition target because it has the equipment, intellectual property and expertise that ICI can smoothly integrate into its manufacturing process and achieve significant cost and quality advantages.""

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