Industrial Services of America, Inc. Announces Exclusive Management Contract
with Blue Equity, LLC
LOUISVILLE, Ky. -- April 01, 2013
Industrial Services of America, Inc. (NASDAQ: IDSA), 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 agreement with Louisville-based Blue Equity, LLC ("Blue
For a 12 month term beginning April 1, 2013, Blue Equity will provide
management services to Industrial Services of America, Inc. (“ISA”), including
working with ISA’s existing management team to review operations and identify
opportunities for growth and profitability. ISA's Board of Directors considers
Blue Equity's role as a key to ISA’s future plans to develop and improve upon
its core business operations, enhance the current platform, secure strategic
alliances and to diversify corporate holdings in domestic and international
Blue Equity’s Chairman and Managing Director, Jonathan Blue, has extensive
experience in the scrap recycling business. The Blue family owned and operated
Louisville Scrap Material Company, which became a worldwide leader in the
industry. Blue represented the fourth generation of his family to operate,
grow and transform the business. He expanded the business into international
railroad and other markets to become one of the largest suppliers to railroads
and rail-related enterprises. In 1998, the company was sold to the largest
worldwide operator in the sector, Progress Rail Services Corporation, now
owned by Caterpillar (CAT-NYSE). Other Blue Equity executives have also worked
in the scrap and recycling-related businesses.
“Blue Equity’s business philosophies and practices have successfully
transcended a diverse range of industries and now it seems we have come full
circle, returning with this transaction to the scrap and recycling businesses.
We look forward to working together with our partners at ISA to realize our
shared vision for the future,” said Jonathan S. Blue, Chairman and Managing
Director of Blue Equity, LLC.
Harry Kletter, ISA’s Chief Executive Officer and Founder, commented, “I have
known Jonathan Blue his entire life and have watched him develop into one of
the region’s most successful businessmen. He and his team have an impressive
track record which I am confident will benefit our company and our
shareholders. I am thrilled that he and his team have agreed to take ISA into
a new era of growth.”
“I am pleased to be able to build upon the 60 years of hard work and vision
Harry Kletter has contributed to ISA and I hope to honor his contribution by
taking ISA to the next level,” concluded Blue.
Also on April 1, 2013, ISA issued 125,000 shares of its common stock to Blue
Equity in a private placement at a per share purchase price of $4.00. Subject
to shareholder approval and vesting provisions, ISA granted options for a
total of 1,500,000 shares of its common stock to Blue Equity at an exercise
price per share of $5.00.
About Blue Equity
Blue Equity, LLC (www.blueequity.com) is an independent, private equity firm
investing both growth capital and business expertise in enterprises with solid
development potential.Blue Equity forms strategic partnerships with existing
management teams, leveraging expertise and relationships to stabilize,
strengthen and grow lasting value.Investment efforts and managerial expertise
are focused on the operation of a global and diversified portfolio of business
enterprises, including opportunities in oil and gas, media, distribution,
healthcare, art commerce, defense, financial services and real estate. Blue
Equity is dedicated to helping businesses grow by accelerating opportunity and
driving innovation to the marketplace.
Headquartered in Louisville, Kentucky, Industrial Services of America, Inc.,
is a publicly traded company whose core business is buying, processing and
marketing scrap metals and recyclable materials for domestic users and export
markets. Additionally, ISA offers commercial, industrial and business
customers a variety of programs and equipment to manage waste. More
information about ISA is available at www.isa-inc.com.
This news release contains forward-looking statements that involve risks and
uncertainties that could cause actual results to differ from predicted
results. Specific risks include fluctuations in the price of recycled
materials, varying demand for waste managing systems, equipment and services,
competitive pressures in waste managing systems and equipment, competitive
pressures in the waste managing business, and loss of customers. Further
information on factors that could affect ISA’s results is detailed in ISA’s
filings with the Securities and Exchange Commission. ISA undertakes no
obligation to publicly release the results of any revisions to the
Industrial Services of America, Inc.
Harry Kletter or Alan Gildenberg, 502-366-3452
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