ERJ staff report (TB)
Minneapolis, Minnesota -- Recycled rubber roofing manufacturer Rubber Research Inc. (RRI) has signed a letter of intent to purchase 100 percent of the outstanding common stock of Hi-Tek Rubber Inc.
â€œHi-Tek has the capability and expertise to develop and support our ambitious plans for the manufacture and distribution of rubber-based roofing products,â€ said Werner Remmen, president of Rubber Research parent company Rubber Research Group Ltd. (RRG), in an RRI press release.
The equity purchase agreement is to be completed, on the approval of both the RRG and Hi-Tek boards of directors, on or about Feb. 29, the release said. Once the sale is complete, Hi-Tek will be a wholly-owned subsidiary of RRG.
The cost of the stock purchase was not disclosed.
RRI has an exclusive licensing agreement for the use of Tirecycle, a patented manufacturing process used to recycle old rubber, the company said.
From Tire Business (A Crain publication)