General Environmental Management Inc. said Monday that it has signed a definitive letter of intent to acquire Santa Clara Waste Water, a wastewater treatment business in Ventura County. Terms were not disclosed.

The move is a first step in the Pomona company's shift from providing hazardous waste field services to water treatment and waste-to-energy markets. The company last month sold its GEM Mobile Treatment Services Inc. for $5.6 million.

"While we believe that we could work through the current economic downturn and build revenue in our field services business, we believe that shareholders will be rewarded by moving the company into higher-margin, faster-growing business segments, especially the water treatment and waste-to-energy markets," Chief Executive Tim Koziol said in a statement.

Santa Clara Waste Water's facilities include a 12.7 mile pipeline from its Santa Paula facility to the city of Oxnard's water reclamation center.

"We are acquiring not only a long-time successful company with a great track record and valuable assets, but are partnering with one of the finest management teams in the environmental management business," Koziol said.

General Environmental Management shares were unchanged at 73 cents in midday trading on the Over-the-Counter Bulletin Board.

For reprint and licensing requests for this article, CLICK HERE.