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SG Blocks to Acquire Modular Manufacturer Echo DCL
Tuesday 22 September 2020

US-based container/modular-based structures provider SG Blocks, Inc. (NASDAQ: SGBX) has entered into an agreement to acquire substantially all of the assets of container/modular manufacturer Echo DCL, the company said.

The deal excludes Echo DCL's real estate holdings, for which SG Echo has obtained a right of first refusal to acquire same, in a cash and stock transaction, which is a significant vertical integration.

Echo DCL is a container/modular manufacturer and current supplier to SG Blocks based in Durant, Oklahoma specialising in the design and construction of permanent modular and temporary modular buildings.

ECHO current projects with SG Blocks include a USD 4m boutique, mixed-use hospitality development in the Everglades, which was approved for fabrication in July 2020.

SG Blocks' acquisition of ECHO DCL will also service the D-Tec orders addressing Covid-19, as well as the educational and medical suite of offerings previously announced with Grimshaw Architects.

Since inception, ECHO DCL has catered to meet the space needs of major markets, including military, education, administration facilities, health care, government, commercial and residential manufacturing.

Some of the locations where ECHO DCL or its predecessors have previously executed various modular and prefab construction projects include Arizona, California, Florida, Hawaii, Illinois, Texas, and Washington, DC

The agreement to acquire substantially all the assets of ECHO DCL, except for ECHO DCL's real estate holdings, for which SG ECHO obtained a right of first refusal to acquire same, is subject to customary closing conditions and expected to close on or before September 23, 2020.

Terms of the acquisition provide for the payment to Echo of USD 1,059,600 in cash at closing, subject to the escrow of certain of the purchase price funds, and the payment of certain of Echo's indebtedness by SG Echo.

SG Blocks, Inc. is in advancing and promoting the use of code-engineered cargo shipping containers for safe and sustainable construction.

The firm offers a product that exceeds many standard building code requirements, and also supports developers, architects, builders and owners in achieving greener construction, faster execution, and stronger buildings of higher value.

Each project starts with GreenSteel, the structural core and shell of an SG Blocks building, and then customized to client specifications.
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Date Published: 22/09/2020

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