ADA-ES, Inc. (NASDAQ: ADES) (“ADA”) today announced that it has acquired the assets of Bulk Conveyor Specialist Inc. and Bulk Conveyor Services, Inc. (collectively, BCSI) for an initial payment of $2 million with an additional $3 million to be paid over the next five years. As previously announced, ADA and BCSI entered into a definitive asset purchase agreement in July 2012. The assets are now held in a wholly-owned subsidiary of ADA called BCSI, LLC.
Based in McKeesport, PA, BCSI is a leading U.S. supplier of Dry Sorbent Injection (DSI) and other material handling equipment to the coal-fired power generation industry, as well as testing and related services. BCSI has supplied 22 commercial DSI systems to date, representing approximately 40% of DSI units sold to utility customers for controlling acid gases.
Dr. Michael Durham, President and CEO of ADA, commented, “This acquisition should increase our market leading position in commercial acid gas control, and allow us to vertically-integrate our Emissions Control business operations, including expanding our capacity to supply Activated Carbon Injection (ACI) systems.”
He continued, “The U.S. Environmental Protection Agency’s Mercury and Air Toxics Standard (“MATS”) mandates the control of acid gases at coal-fired power plants. As a result of this law, we believe that sales of DSI and ACI systems will generate over $300 million in revenues for ADA over the next three years. The new rule has created a significant increase in procurement activities such that ADA has active bids on over $160 million for ACI systems, and BCSI has active bids on over $100 million of DSI systems. The total potential market could actually increase as the result of the recent decision by the U.S. Court of Appeals for the District of Columbia to vacate the EPA’s Cross-State Air Pollution Rule (CSAPR), because CSAPR was driving many announced plant retirements. With the requirement to reduce sulfur dioxide and nitrogen oxide emissions delayed for several years, certain plants could have extended lives and will need to control acid gases and mercury by 2015 in order to comply with MATS.”
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