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Acquisition Strategy Paying Off for Sustainable Green Team, Ltd. (SGTM) Through Increased Profits, International Expansion
November 6, 2020

Acquisition Strategy Paying Off for Sustainable Green Team, Ltd. (SGTM) Through Increased Profits, International Expansion

  • National Storm Recovery Inc. acquired Mulch Manufacturing Inc. several months ago to create SGTM
  • SGTM diverts storm waste from landfills to create attractive next-generation products that benefit the environment
  • Mulch Manufacturing recently secured many new contracts that include The Kroger Co., Circle K, Menards Inc. and Old Castle Lawn & Garden
  • SGTM’s Q2 results nearly doubled from previous quarter; include $12.3 million revenue, $3.4 million gross profit

Proving the theory that the whole is greater than the sum of its parts, National Storm Recovery Inc. recently acquired Mulch Manufacturing Inc. to create the Sustainable Green Team (OTC: SGTM) – a leading provider of environmentally-beneficial solutions for tree and storm waste disposal. Besides increased sales, greater profits and international expansion, the synergistic activities of both companies further solidify their shared roles as stewards of the environment through the creation of organic products that benefit nature while diverting natural waste from landfills.

“With Mulch Manufacturing’s national and international distribution, its sales contracts with many big box retailers, and the increase in production and packaging capacity it provides, this strategic acquisition has positioned us as The Sustainable Green Team,” said SGTM CEO Tony Raynor at the time of the acquisition (https://ibn.fm/ct1we).

SGTM primarily provides solutions for the treatment and handling of tree debris created by storms that typically gets sent to disposal sites. Along with creating additional pressure on landfills, this natural waste further increases municipal expenses while contributing to the overall environmental burden experienced across the nation. With over 40 years of combined next-level experience, SGTM provides services that convert this problem into profits by collecting, treating and caring for these trees and transforming them into products that include garden mulch and playground surfacing material.

Besides making good economic sense, the move continues to pay dividends in the form of increased profits – despite the economic recession connected to COVID-19. SGTM just keeps on growing, and part of that growth is attributed to contracts between Mulch Manufacturing and large industry players like The Kroger Co., Circle K, Menards Inc., Old Castle Lawn & Garden, and many more.

“This business combination has created an industry power house; and with our combined strengths, puts us in an ideal position to increase our sales and resulting margins, as our combined operations benefit from the resulting vertical integration and economies of scale,” noted Mulch Manufacturing CEO Ralph Spencer.

Management forecasts at the time of the acquisition have materialized with better results than expected. SGTM’s profits nearly doubled in a quarter, leading to impressive Q2 results that include $12.3 million in revenue and $3.4 million in gross profit (https://ibn.fm/JfSbb). Along with the increased contracts from Mulch Manufacturing, much of this growth can also be attributed to relief efforts in the wake of Hurricane Laura along with new contracts between SGTM’s strategic partners and state municipalities.

STGM’s strong commitment to environmental sustainability served as a primary motivation behind the name and ticker change from National Storm Recovery Inc. (OTC: NSRI) to Sustainable Green Team, Ltd. (OTC: SGTM). Along with driving forward its environmental mission, the company is also committed to maximizing shareholder value, particularly for investors looking to leverage profitable – and ethical – opportunities during times of economic uncertainty.

To learn more about Sustainable Green Team Ltd., view the investor presentation at https://ibn.fm/OSR73.

NOTE TO INVESTORS: The latest news and updates relating to SGTM are available in the company’s newsroom at http://ibn.fm/SGTM

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