Dynamic Process Industries

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Divestiture Date:

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August 13, 1999

N/A*

13 months

US$ 10

N/A*

Water Remediat’n & Reclamat’n Eqt Mfr

3509

Portfolio Analysis & Discussion

Sold & Reaquired

Dynamic Process Industries (DPI) was actually a division of Ferguson International (See Alumni- Ferguson International), whose sales essentially carried the whole company until during the first months after InAmerica acquired it. It’s flagship product, The PetroBelt was a popular self-contained belt-skimming device that would remove hydrocarbons from water. Most customers utilized the PetroBelt to remove oil and gasoline floating on the surface in water tanks. It became an affordable method of water remediation imposed by EPA inspections.

DPI was sold as part of the sale of Ferguson International to Thermatrix, Inc. But soon after the sale, Thermatrix which was focused on air pollution abatement, ignored the water remediation market and essentially left DPI customers who were looking for service or replacement belts, in a lurch. The calls became a significant annoyance to Thermatrix.

Within 60 days of its sale, Thermatrix asked InAmerica to reacquire DPI as to be relieved of the difficulty and bad public relations. So in August of 1999, InAmerica acquired DPI and resumed servicing the water remediation customers. InAmerica formed a new subsidiary, ExoGear Corporation, to market the water remediation products.

Becuase ExoGear’s product line was not broad enough to survive as an individual business entity, InAmerica negotiated the addition of a competitor’s product lines, as to broaden the market potential to support a sales staff. Within 60 days, InAmerica added the Ameri Environmental product lines to its offering (See Alumni- Ameri Environmental).

ExoGear now had products it could market, but no facility to manufacture its products. In November 1999, InAmerica negotiated an outsourcing agreement with the parent company of Ameri Environmental, so that ExoGear could fulfill new orders. Unfortunately, the market did not materialize that would allow ExoGear to stand on its own with the product lines in house.

Eventually, InAmerica renegotiated with the parent company of Ameri Environmental to rescind the acquisition of the product lines and the Outsourcing Agreement for manufacture so that both companies could properly sever ties.

ExoGear remains a unit of InAmerica, but is dormant until it sees a viable market for the product line or perhaps the sale of the product line to competitor in water remediation.

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