BOSTON, Mass., Nov., 2010-- Converted Organics Inc., (Nasdaq:COIN) announced today that the Company has closed on the acquisition of 95% of the membership interests in TerraSphere Systems, LLC, a rapidly growing pioneer in the vertical farming market. Converted Organics Inc. entered into an agreement to acquire TerraSphere Systems, LLC on July 6, 2010. This acquisition was approved by Converted Organics' Shareholders on September 16, 2010 and closed on November 12, 2010. The completion of this all stock transaction is the Company's largest acquisition to date.
TerraSphere designs, builds and operates highly efficient and scalable growing systems, featuring a patented, proprietary technology that utilizes vertically-stacked modules to house rows of plants, which are then placed perpendicular to an interior light source to grow pesticide-free organic fruits and vegetables. Due to a controlled, indoor environment, the system generates fresh produce year-round in any location or climate worldwide.
'The acquisition of TerraSphere expands the Company's portfolio of sustainable, environmentally-friendly green assets and is a continuation of our strategy to grow our business through accretive acquisitions,' said Edward Gildea, President and CEO of Converted Organics. Gildea continued, 'On a pro-forma basis, TerraSphere contributed more revenues than Converted Organics in 2010, and the combined companies are expected to accelerate our growth in 2011 and beyond. '
Vertical farming provides a valuable urban agricultural model that allows locally grown, fresh, pesticide-free produce to be cultivated closer to population centers, resulting in lower supply chain costs, as well as reduced carbon emissions and fuel costs associated with traditional production and distribution methods. These controlled growing environments protect crops from weather related problems, eliminate the need for synthetic pesticides, herbicides and fungicides, reduce nitrate run-off and help preserve natural resources through a reduction in the need for additional farmland.