S&B is a manufacturer and supplier of water gaskets in the world.
"This is a significant step for AquaCell," said Chairman James C. Witham. "We have been working for months to locate a marketing partner which is a known leader in the water industry worldwide and which shares our vision of the great potential growth of the industry."
Witham continued: "We are pleased to be associated with S&B, considering their worldwide reputation in the water industry. In working with both Brad Corbett Sr. and Brad Corbett Jr. over the past several weeks in finalizing this deal, we have not only built a strong business plan together from which to go forward, but more importantly, have established a strong relationship with one another. "We certainly could not have picked a better partner."
"The Corbett Group of Companies is excited to work with AquaCell in the promotion of their innovative technologies, both domestically and internationally," said Bradford Corbett Jr. "We feel that the combination of this technology and our international and domestic contacts will enable us to build a very successful business."
Under the terms of the agreements, AquaCell will continue to work and develop its current marketing programs, including Roto-Rooter Plumbers and the Government Services Administration, with Corbett being responsible for all other marketing efforts.
The agreements divide domestic marketing and international marketing into two different structures. Under the terms of the domestic sales and marketing agreement, Corbett will distribute AquaCell's products. Global Water-Aquacell will maintain approximately a 58 percent gross profit margin under the terms of the agreement, while eliminating its incremental sales and marketing expenses.
AquaCell has purchased a 15 percent stake in Corbett from S&B, and thus, will realize 15 percent of the profits of Corbett.
Under the terms of the international agreement, a newly formed joint-venture subsidiary will have both marketing and manufacturing rights for AquaCell's products. Products will be manufactured in countries in which S&B has operations, including: Australia, Brazil, Costa Rica, France, Thailand, Mexico and Canada. This newly formed joint-venture subsidiary will be owned 55 percent by S&B and 45 percent by AquaCell.