Bantec Engaged in a Letter of Intent to Acquire a Small New Jersey Based Manufacturing Company

Rhea-AI Summary

Bantec, Inc. has engaged in a Letter of Intent to acquire a small New Jersey based manufacturing company. The target company has sales of $2.3 million and an EBITDA of $300,000, specializing in specialty metal, Teflon, and glass products for pharmaceutical, biotech, and chemical industries. Bantec plans to seek government approval for Chem Flowtronic products and sell them through Howco, with the acquired company becoming a subsidiary of Bantec Inc.

Positive

• Bantec expanding its portfolio with the acquisition of a manufacturing company.

• Potential growth opportunities in the pharmaceutical, biotech, and chemical sectors.

• Expected increase in revenue with the addition of the target company's products.

Negative

• Potential risks involved in seeking government approval for Chem Flowtronic products.

• Integration challenges in merging the acquired company into Bantec's operations.

• Possible financial strain from the acquisition process and operational changes.

SPARTA, N.J., May 1, 2024 /PRNewswire/ -- Bantec, Inc. (OTCPINK: BANTD) ("Bantec" or the "Company"), Bantec, Inc., a product and services company, signed an LOI to purchase a small New Jersey based manufacturing company.

Michael Bannon, Bantec's Chairman and CEO stated: "We are excited to pursue this acquisition. This company has sales of approximately $2.3 million and an EBITDA of $300,000. This company engineers and manufactures specialty metal, Teflon, and glass products including sight flow indicators, mixers, reaction vessels and process systems for pharmaceutical, biotech and chemical companies. We intend to seek government approval for all Chem Flowtronic products and sell them to the Defense Logistics Agency through Howco. Like Howco, Chem Flowtronics, once purchased, will become a wholly owned subsidiary of Bantec Inc." 

About Bantec 

Bantec, Inc. is a product and service company targeting the U.S. Government, state governments, municipalities, hospitals, universities, manufacturers, and other building owners. Bantec also provides product procurement, distribution, and logistics services through its wholly owned subsidiary, Howco Distributing Co., to the United States Department of Defense and Defense Logistics Agency. The Company established Bantec Sanitizing in fiscal 2021, which offers sanitizing products and equipment through its store bantec.store. The Company has operations based in Sparta, New Jersey and Vancouver, Washington. The Company continues to seek strategic acquisitions and partnerships that offer it an opportunity to grow sales and profit.

Forward-Looking Statements 

Certain statements in this press release may be considered "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995.  Forward-looking statements may be identified by the use of words referencing future events or circumstances such as "expect," "intend," "plan," "anticipate," "believe," and "will," among others.  These forward-looking statements may include projections of matters that affect revenue, operating expenses, projections of growth; and assumptions relating to the foregoing. These forward-looking statements are based upon the Company's current expectations and involve assumptions that may never materialize or may prove to be incorrect. Actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of various risks and uncertainties. More detailed information about the risks and uncertainties affecting the Company is contained under the heading "Risk Factors" included in the Company's Annual Report on Form 10-K for the year ended September 30, 2022, that the Company filed with the SEC. One should not place undue reliance on these forward-looking statements, which speak only as of the date on which they were made. The Company undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they were made, except as may be required by law. 

Contacts: Michael Bannon; Chairman & CEO; Stockholders@Bantecinvestorrelations.com; (203) 220-2296

View original content:https://www.prnewswire.com/news-releases/bantec-engaged-in-a-letter-of-intent-to-acquire-a-small-new-jersey-based-manufacturing-company-302133015.html

SOURCE Bantec, Inc.

FAQ

What is the LOI signed by Bantec?

Bantec, Inc. signed a Letter of Intent to acquire a small New Jersey based manufacturing company.

What are the sales figures of the target company?

The target company has sales of approximately $2.3 million.

What products does the target company manufacture?

The target company engineers and manufactures specialty metal, Teflon, and glass products for pharmaceutical, biotech, and chemical companies.

Who will become a subsidiary of Bantec Inc. after the acquisition?

The target company will become a wholly owned subsidiary of Bantec Inc.

What is Bantec's plan for selling Chem Flowtronic products?

Bantec intends to seek government approval for Chem Flowtronic products and sell them through Howco.