Rumor or Fact, USIC buys ELM

[jrs87ss]

I heard it throught the grapevive, USIC has bought ELM. Anyone else hear this yet?

[Paint'n & Flag'n]

fact....email just sent out from mike stanton stating the purchase

[Paint'n & Flag'n]

let me restate that....was bought out in Florida, Illinois and Minnesota markets

[Oldtimer]

No they are not buying ELM they are aquiring 17 contracts from ELM in Minnesota,Florida, and Illinois. It is quite different than buying ELM.

[Shadowcat]

Here is Mike Stayton's Email:


From the Desk of Mike Stayton …


--------------------------------------------------------------------------------

Last April, when I first told all of you about USIC’s change in ownership, I characterized the change as being positive and supportive of our long term plans to grow USIC.



And so, I am very pleased to announce USIC’s pending acquisition of ELM Locating & Utility Services’ operations in our Florida, Illinois and Minnesota markets. Soon, USIC Locating Services, Inc. will grow larger and stronger when we add 17 new customer contracts and a group of new employees to the USIC family. While these employees may be “new” to USIC, they are certainly not new to the locating industry. Like USIC, ELM has invested significant time in building customer relationships and developing locating talent. We hope to complete the transaction by the end of September and you will, again, hear from me when the purchase is final.



While this growth will not significantly impact the way most of you contribute to the success of our business on a day-to-day basis, it will certainly have a positive long-term impact on the health of USIC by increasing our already impressive presence in the locating marketplace, by growing USIC’s brand power and by providing even more job security and career opportunities.



The next several months will be a very busy time for our teams in Illinois, Minnesota and Florida and for our headquarters’ groups which support our operations. We have a lot of hard work ahead of us to create a smooth operational transition and field workforce integration for our customers and I am pleased that we have a very talented and experienced team of people to make that happen.



Thank you for your help and I look forward to the success I am confident you will create!



Please join me in welcoming these new members to the USIC family.



Best Regards,

Mike Stayton

[Paint'n & Flag'n]

USIC’s pending acquisition of ELM Locating & Utility Services’ operations in our Florida, Illinois and Minnesota markets.

Seems to me they are buying ELM unless this statement means something other than what Im reading.

[Paint'n & Flag'n]

We hope to complete the transaction by the end of September and you will, again, hear from me when the purchase is final.

And this one as well...not to mention the word PURCHASE is stated.

[jrs87ss]

I heard they are also taking on about 1200 ELM employees. Don't know how many ELM has, but that is a lot of locators.. Guess we will know more when it is a done deal..

[jrs87ss]

From the ELM website..

United States Infrastructure Corporation (USIC) to Acquire ELM Locating Operations in Three States9/3/2010 12:01:49 PM



ELM Locating, a member of the ELM Group family of companies, headquartered in Missoula, Montana, is a fast-growing underground locating firm with a strong presence in states across the Western U.S.

“The sale of our locating operations in our Florida, Illinois and Minnesota markets allows us to re-focus our company in our 15 Western U.S. states. These Western states comprise our core locating operations. We have built good relationships with our customers in Florida, Illinois and Minnesota and wish USIC well as they move forward,” said Lee Graves, CEO of the ELM Group.

Based in Indianapolis, Indiana, USIC was created in 2008 through the combination of SM&P Utility Resources, Inc. and Central Locating Services Ltd., formerly the #2 and #3 locating firms in the U.S. USIC operates 38 customer focused offices in its 20 state footprint. In May 2010, USIC was acquired by OMERS Private Equity.

“We are pleased with the purchase of additional business in our core markets. USIC will add over 100 new employees to our base of 3,000 locating professionals. Not only will we add additional work with current customers, but will also add new customers in these existing USIC markets. ELM built good businesses in Florida, Illinois and Minnesota and this transaction is good for the customers, good for ELM and good for USIC. It’s a win-win-win,” said Mike Stayton, President of USIC.

[Jared]

ELM is not being purchased outright. Utility contracts (and likely assets as well) are being purchased in the three states noted above. We will still employ over 1,000 locators in our remaining markets. It will be interesting to see how the transfer of jobs plays out, and to get comparative company perspectives from those who join the ranks of USIC.

I would like to wish the best of luck to all the ELM guys in those states!

Jared

[gypsygirl]

Thanks Jared.

[yahoo]

the crazy thing is this is going to take place THIS month!!!!

[boozerr]

Taking on extra territory when you are failing miserably in established areas like Pennsylvania, etc. Not sure if this is a wise move but its their company to destroy. Can't believe the mess in PA, its well deserved to the management here but feel sorry for the locators. Glad i got out when I did. Good luck to you all.

[ProfessionalLocator]

Taking on extra territory when you are failing miserably in established areas like Pennsylvania, etc. Not sure if this is a wise move but its their company to destroy. Can't believe the mess in PA, its well deserved to the management here but feel sorry for the locators. Glad i got out when I did. Good luck to you all.

It is not uncommon for failing companies to purchase smaller firms thinking that this will boost lagging profit elsewhere. The obvious that they are doing something wrong and the need to invest in correcting their current problems first does not occur to them.

[ProfessionalLocator]

ELM is not being purchased outright. Utility contracts (and likely assets as well) are being purchased in the three states noted above. We will still employ over 1,000 locators in our remaining markets. It will be interesting to see how the transfer of jobs plays out, and to get comparative company perspectives from those who join the ranks of USIC.

I would like to wish the best of luck to all the ELM guys in those states!

Jared

As negotiable instruments go utility locate contracts are not good buys. The contract is with the client utility who is likely to have a no sale clause in the contract. Even without a no resale clause if they disapprove of the purchasing firm they can exercise an "out clause" and you are left holding worthless paper that you paid big money for.

Many of these locate contracts have a clause where either party can end the contract with X number of days notice regardless of the term of the contract.