Category: News || By Staff and Submitted Reports

(Photo courtesy Bulk Conveyor Specialist Inc.)

A city-based manufacturer of equipment for power plants is being acquired for $5 million and company officials see it as an opportunity for growth.

ADA Environmental Solutions of Highlands Ranch, Colo., has announced plans to acquire Bulk Conveyor Specialist Inc. in a deal expected to close later this month.

Bulk Conveyor, located on Locust Street in the RIDC Industrial Park, makes handling systems that can feed, store and dispense chemicals and dry material and remove byproducts, such as grit. Its products are used to control acid-gas emissions from coal-fired power plants.

The privately held company has about 50 employees and will operate as a wholly owned subsidiary of ADA, based in McKeesport.

"I am thrilled that BSCI is becoming part of a company with the same dedication to customer service that we have provided over the past 25 years," said Bill Caputo, owner of Bulk Conveyor, in a prepared statement.

New federal regulations mandating reductions in acid-gas emissions are expected to create a new $500 million market for so-called dry-sorbent injection, or DSI, systems such as those made by Bulk Conveyor, an ADA spokesman said.

DSI systems built by Bulk Conveyor have been installed throughout the U.S. and Canada.

The purchase of Bulk Conveyor and its manufacturing facility will provide ADA with significant capacity, experience and resources, a spokesman said.

Sales of systems such as those made by Bulk Conveyor are expected to generate more than $300 million in revenues for ADA over the next three years.

"We are very pleased to announce this step to vertically integrate portions of our equipment supply business," said Michael Durham, president and chief executive officer of ADA. "Our new subsidiary, which will retain the BCSI name, will allow us to further advance our innovative, patent-pending, DSI process by marrying it with BSCI's successful, proven design.

"BCSI capabilities will enhance not only our DSI business, but will provide new manufacturing and supply chain options for ADA's portfolio of emission control solutions and open markets that we are currently not serving," Durham said. "With this acquisition, we are more confident of our ability to be a market leader in both the ACI and DSI markets."

Aaron Prince will become the new general manager of Bulk Conveyor. For the past 15 months, Prince has served as ADA's Refined Coal Development Director working with Clean Coal Solutions, LLC, where he managed the effort to design, fabricate, install and qualify 26 RC facilities in 2011.

Prior to joining ADA, he managed fabrication and manufacturing facilities in the U.S. and abroad. He also has strong business development skills.

Prince will work with Caputo, who will enter into a long–term, exclusive consulting agreement with ADA.

(Editor's Note: Written from press releases and supplied material.)

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