Industrial Services of America, Inc. (NASDAQ: IDSA) (“ISA” or the “Company”), a company that buys, processes and markets ferrous and non-ferrous metals and other recyclable commodities for domestic users and export markets and offers programs and equipment to help businesses manage waste, today announced that it has entered into a management services agreement (the “Management Agreement”) with Louisville-based Algar, Inc. (“Algar”), effective December 1, 2013.
The Management Agreement provides for various executives and employees of Algar to assist ISA with day-to-day operations, in an attempt to strengthen the Company’s financial position and operating performance in the challenging scrap metal recycling market. Algar’s executives and employees have extensive experience working in scrap procurement and processing. Sean Garber, Algar’s Chairman and Chief Executive Officer, formerly worked at ISA and was its President from 1997 to 2000. As such, Mr. Garber has direct experience with the Company’s facility and operations. In accordance with the Management Agreement, the Company’s Board of Directors has appointed Mr. Garber to serve as President.
ISA’s Board of Directors considers Algar’s experience in the scrap recycling industry, familiarity with ISA and immediate availability to fulfill the role critical to its decision to enter into the Management Agreement with Algar. The term of the Management Agreement is effective December 1, 2013 and extends through December 31, 2016.
“We are very pleased to have identified a group with extensive industry and operating experience in scrap recycling. We are excited about Sean’s plan to grow the Company through the acquisition of auto parts companies and other businesses. We believe he and his team can immediately and beneficially impact ISA’s operations, and welcome him to the Company,” stated Orson Oliver, the Company’s Chairman and interim Chief Executive Officer.
Mr. Garber added, “My team and I are excited to bring to bear our industry expertise, operating experience and ability to develop a strong corporate culture to ISA. I am thankful to Mr. Kletter for giving me the opportunity to come to Louisville in 1996. I look forward to working with the ISA team to build the Company into a larger, stronger business, which ultimately should bring value to ISA shareholders.”