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March 20, 2013 /PRNewswire/ --
Sarasota, Florida-based Evolucia Inc. (OTCBB & OTCQB: ILED) and
Warsaw, Poland-based SETE Sp. z o.o. ("SETE") announce today that they have finalized a joint venture whereby the companies will work together to manufacture, market and sell Evolucia's proprietary energy-efficient LED lighting products throughout
Europe under the Evolucia brand.
The joint venture calls for the payment of
$11 million (
8.5 million Euros) to Evolucia by
August 31, 2013 for the manufacture and distribution rights to the European markets. Under the joint venture agreement, a new entity called Evolucia Europe Sp. z o.o. will be created, with Evolucia Inc. holding a 51% ownership share and SETE holding the remaining 49% ownership. The joint venture agreement provides exclusive manufacturing rights to Evolucia Europe for the European markets. Production of the Evolucia LED Aimed Optics™ fixtures is expected to begin in 2013 at the manufacturing facility in Radom,
"This joint venture is a testament to the hard work and vision that is shared between our two organizations and the importance of delivering world class lighting solutions to our strategically focused markets around the world. This agreement signals the start of an international expansion for our company. Solid State Lighting will continue to develop for years to come and our experience is that global customers and investors are looking at key enablers in the market, with innovative design concepts that change the course of challenging applications, like our proprietary Aimed Optics™ technology," said
Mel Interiano, Evolucia Chief Executive Officer. "This critical
$11 million (
8.5 million Euros) investment allows us to leverage key strengths in order to build a world class global lighting organization capable of supporting what we believe will be significant revenue growth in the short term with the ability to expand over the long term."
"This licensing fee will add
$9.9 million (
7.7 million Euros) to incremental free cash flow after associated expenses in 2013 (the equivalent effect of nearly
$45 million-34.8 million Euros in revenues) and represents step one of a broader, multi-step plan we are implementing this year as part of our financial roadmap to strengthen the company's balance sheet," said
Charles Rockwood, Executive Vice President and Chief Financial Officer, Evolucia Inc.
Evolucia Europe will be headquartered in
Warsaw, Poland and will report to the U.S.-based Evolucia Inc.
Arkadiusz Pietrzykowski has been named president of Evolucia Europe and will report to
Mel Interiano, CEO of Evolucia Inc. Municipal and public sector lighting accounts for 75 million points of light across Europe. The European Union has embarked on an effort to reduce energy consumption and carbon emissions by 2024. High Pressure Sodium (HPS) used throughout
Europe for street, roadway and parking lot lighting has been targeted for replacement opening up this large market to Evolucia's Aimed Optics™ LED Cobra Head roadway lighting solutions.
Poland currently accounts for 5% of the total market. The Evolucia LED Cobra Head fixture captured two sought after European awards winning the Best Product in the 19
th International Fair of Lighting Equipment , LIGHT 2011, and the Leader of Sustainable Development during the 5
th Economic Forum "Energy and Environment" in
Warsaw in 2011.
"For the time being SETE will subcontract manufacturing in Radom,
Poland in order to start production shortly. The manufacturing facility is already up and running and we have begun re-tooling for the European versions of the Evolucia LED lighting portfolio. We had already begun outreach to several cities, towns and private businesses in
Europe in anticipation of this agreement and we expect to commence delivery of the highly efficient Evolucia LED products to municipal and recreational customers this year," said
Arkadiusz Pietrzykowski, President, Evolucia Europe.
Evolucia street, roadway, area, garage and parking lot lighting provides optimum energy savings, excellent color rendition and long life. In addition, the Evolucia products are designed to optimize product performance with the company's protected Aimed Optics™ photometric design. Evolucia delivers a completely integrated lighting system. By optimizing the photometrics of the lighting fixtures, light is delivered precisely to the area being targeted, with minimal spill and waste. Evolucia LED street lighting delivers 66% energy savings when compared to traditional light sources. Its average 70,000 hour life translates to years without maintenance and up-keep and is backed by Evolucia's leading 10 year warranty program.