NEWMARKET IT ANNOUNCES $50 MILLION IN PRIVATE EQUITY FUNDING FROM CATTERTON PARTNERS AND EXPANSION
August 7, 2006, Austin, Texas -- Newmarket IT, a leader in the data erasure, remanufacturing, remarketing and environmentally-safe recycling of personal computers, announced today that it has completed its first round of funding from Catterton Partners, the nation's leading private equity firm focused on the middle-market consumer sector. Catterton Partners, based in Greenwich, Connecticut, has committed $50 million of growth capital to Newmarket IT.
"The business of recycling and reselling PCs safely, securely and responsibly is a $1.5 billion industry that is growing by 45% per year. Clearly, there is tremendous opportunity in the space, and our assessment shows that Newmarket IT is the most disciplined operating company in the sector with the greatest potential for growth," said Michael Farello, partner, Catterton Partners, who will join Newmarket IT's board of directors. "This infusion of capital will give Newmarket IT the fire power it needs to establish a stronger national presence, build an international presence and launch services for additional product categories such as cell phones and PDAs."
As part of its growth plan, Newmarket IT also announced today that it has acquired a new 120,000 square-foot facility in Austin that was formerly occupied by Dell. The facility, which will handle product repairs and refurbishments, will increase Newmarket IT's remanufacturing capacity by more than 300%. In addition to adding scale, the expansion will enable the company to continue to find ways to reduce the costs associated with sanitizing, remanufacturing, remarketing and recycling PCs. In addition to the new Austin facility, the company owns and operates a processing plant in Richmond, Virginia, and is expected to announce new facilities in Reno, Nevada, and the Midwest later this year.
To help manage the company's growth, Newmarket IT also announced today that is has recruited a new president, Jake Player, who was formerly the head of Asset Recovery Services for Dell. One of Dell's fastest growing services businesses, the Asset Recovery Services group grew 82% last year under Player's leadership, and forecasts show that it will triple in size by 2009. Player, who will also join Newmarket IT's board of directors, will report to Jeff Zeigler, the company's founder, who held the president title formerly and will now serve as the company's chairman and CEO.
Player said he anticipates substantial growth at Newmarket IT. "Safely and securely sanitizing, recycling, refurbishing and reselling IT equipment is one of the fastest growing segments of the consumer electronics business. Given Newmarket IT's operating excellence and position as a key thought leader in this space, we are perfectly poised to take advantage of that growth. I look forward to working with Jeff and the Newmarket IT team to continue to build our leadership position in the industry."
''We are very excited about completing this round of funding and the opportunities it will enable Newmarket IT as we continue to execute on our growth plan,'' said Zeigler. "'With Catterton's support, our new facility and Jake's experience and leadership, we are in the best possible position to pursue our plans for expansion thoughtfully and aggressively."
According to research conducted in March 2006 by The Parthenon Group, a business strategy consulting group, 75% of consumers are highly concerned about someone retrieving their personal data after they dispose of their computer and 77% recognize that computers are not disposed of properly and are damaging to the environment. The two sources consumers trust most are the PC manufacturer and a company, like Newmarket IT, that specializes in safely and securely sanitizing and recycling personal computers.
About Newmarket IT
Newmarket IT is a leader in the data erasure, remanufacturing, remarketing and environmentally-safe recycling of personal computers. Among the company's top customers are the world's largest PC manufacturers including Dell and Hewlett-Packard. Founded in 1999, and based in Austin, Texas, Newmarket IT has an additional facility in Richmond, Virginia, partner locations in the Netherlands, Spain, Belgium and Germany, and serves more than 16,000 dealers, VARs and wholesalers in more than 60 countries. Privately held, Newmarket IT is ISO 9001, ISO 14001 and OHSAS 18001 certified for meeting stringent quality and environmental standards. In addition, the company is committed to ensuring compliance with all relevant environmental, health and safety organizations and legislations including the Environmental Protection Agency, the US Department of Defense, the Occupational Safety and Health Act, the Gramm-Leach-Blilely Act, the Health Insurance Portability and Accountability Act, and the European Union Data Protection Directive. For more information about Newmarket IT, please visit www.newmarketit.com
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July 19, 2006
Company aims for expansion in growing recycling business
By MATT SLAGLE, AP
DALLAS (AP) - Only about 10 percent of computers, cell phones and other electronics gadgets get recycled, industry analysts say, with the vast majority either collecting dust or leaching toxins into landfills.
While it's a growing problem, Austin-based Newmarket IT founder and CEO Jeff Zeigler also sees a huge business opportunity.
The private company said Tuesday it has won $50 million in funding from equity firm Catterton Partners to help it expand in the computer recycling market, which Zeigler said is a $1.5 billion industry that's growing 45 percent annually.
The computer recycling business has been fragmented so far, with hundreds of companies vying for a piece of the industry, said Gartner analyst Frances O'Brien.
The International Association of Electronics Recyclers, an industry group, estimates there are about 400 mostly small companies in the U.S. electronics recycling business.
"The market is so fragmented that it's hard to identify sizable competitors," Zeigler said. "Our biggest challenge right now is market awareness for our industry and our services."
That market is shifting, and demand for larger-scale services is expected to grow significantly as states and municipalities regulate the disposal of so-called "e-waste."
At the same time, major manufacturers including Apple Computer Corp., Dell Inc. and Hewlett-Packard Co. have launched recycling initiatives of their own.
Much of the work involved in refurbishing or recycling old systems, however, is outsourced to companies such as Newmarket, which has contracts with Dell and other manufacturers.
"The manufacturers have realized they have the capability to do this and make money at it," O'Brien said.
Newmarket began in 1999 as a computer leasing company. But the focus soon switched to recycling as industry demand for leased PCs slackened during the dot-com bust.
The company now makes money by fixing up and wiping clean used equipment from corporations then reselling it, mainly to corporate customers.
Aging or broken systems are disassembled for spare parts or their raw materials at processing plants in Richmond, Va. and a 120,000-square-foot former Dell manufacturing facility in Austin.
Newmarket said it will use some of the $50 million, which it is set to receive Aug. 8, to open new facilities in Reno, Nev., and somewhere in the Midwest later this year as part of a national expansion.
Newmarket also said it has tapped Jake Player, the former head of Dell's Asset Recovery Services, to be president of the company.
Even with companies like Newmarket, there's still a long way to go in an industry where far more systems are built than recycled.
For now, Newmarket handles laptops, desktop PCs, corporate servers and peripherals such as monitors. Zeigler said the goal is to expand into more consumer-oriented products like cellular phones and even video game consoles.
Zeigler said Newmarket is able to process about 3,500 machines daily at its Austin facility, which equates to roughly 1.3 million per year.
Nearby Dell, meanwhile, shipped 37 million PCs in fiscal year 2005, spokeswoman Caroline Dietz said.
"There's a huge gulf between units coming in and units coming out," Zeigler said. "It's a huge opportunity."
October 19, 2005
GOVERNOR WARNER ANNOUNCES UP TO 100 NEW JOBS FOR HANOVER COUNTY
~Newmarket Trading Group to invest $600,000 in electronics recycling center~
RICHMOND - Governor Mark R. Warner today announced that Newmarket Trading Group, Ltd. will invest $600,000 to open a facility in Hanover County. The company will handle the removal, recycling and remarketing of aging personal computer (PC) assets, creating up to 100 new technician jobs within 30 months.
"Recycling electronic equipment is a vital service that can help bridge the digital divide," said Governor Warner. "Newmarket Trading Group is the kind of business we want in Virginia: the company provides substantial environmental benefits and the opportunity for citizens to afford a refurbished computer. Hanover County offers a central location, ample labor force and the pro-business climate prevalent across the Commonwealth. I congratulate Newmarket and Hanover County on this partnership."
Founded in 1999 and headquartered in Austin, Texas, Newmarket Trading Group, a privately-held company, specializes in IT asset recovery solutions. Newmarket assists companies in identifying the risks involved with IT asset disposal and provides solutions to minimize those risks.
"The Central Virginia area is the ideal location for Newmarket's new East Coast Technical Center," said Jeff Zeigler, President and Founder of Newmarket Trading Group. "The location in Hanover County places us within a day's drive of most of our U.S. clients. The access to nearby shipping and transportation hubs provides us with easy exchange with our domestic and overseas customers. We're also very pleased with the skilled workers in the region who'll staff our new facility. We expect rapid growth in the near future and should be processing several thousand computers a day in early 2006."
The Virginia Economic Development Partnership worked with Hanover County and the Greater Richmond Partnership to secure the project for Virginia. The Virginia Department of Business Assistance will support the project with training assistance through its Workforce Services Program.
"We are pleased with Newmarket's expansion and investment in our community, and are privileged to add this company to our growing list of corporate citizens that provide essential services in the technology industries," said J.T. (Jack) Ward, Chairman, Hanover County Board of Supervisors. "On behalf of the citizens of Hanover County and the Richmond region, we welcome Newmarket and are committed to working with them to provide the quality business environment in which they can succeed and continue to grow their business."
Newmarket in the Community
Newmarket, under contract with Operation Homelink, prepared, configured and shipped 165 computers to the 82nd Airborne Division in Fort Bragg North Carolina.
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March 25, 2005
Newmarket Trading Continues Revenue and Earnings Growth
Newmarket Trading Group of Austin Texas, a privately held company, completed on December 31, 2004 its fifth year since with record revenue and profit before taxes. This accomplishment marks the fifth straight year of both top line and earnings growth. Revenue for 2004 of $14.1 million increased 34% year over year. Improved gross margins and operating expenses decreasing as a percent of sales contributed significantly to the record profit.
Newmarket began in the fall of 1999 with an initial investment by its Founder, Jeff Zeigler. The growth of the Company to date has been financed entirely by internally generated funds. The balance sheet as of December 31, 2004 continues to reflect strong current and liquid ratios, no long-term debt, and no investments from outside sources. This financial strength remains a comfort to our asset recovery partners, assuring them of fair and timely payment for their retiring IT equipment.