Citadel Acquires 51% of Stock in Arizona Firm

Citadel Environmental Group in Thousand Oaks has acquired 51% of the common stock of Applied Medical Recovery, an Arizona corporation.

The purchase price was 1.53 million shares of Citadel’s common stock and Citadel’s agreement to fund up to $1.5 million for AMR’s working capital and up to $2 million of capital expenditures.

AMR will use the working capital to facilitate its expansion program, with rapid revenue increases anticipated throughout 1997 and 1998. Company officials said they expect to see a positive cash flow in the fourth quarter of 1997.

AMR’s primary business is recycling and reprocessing noncritical surgical instruments and related medical devices. Revenues for 1996 were approximately $1.4 million for AMR’s subsidiary, Applied Medical Technologies, while its second subsidiary, Arizona Medical Recovery and Reprocessing, contributed insignificant revenue.

Citadel may increase its percentage ownership of AMR by acquiring additional shares held by 18 individuals who make up the outstanding 49% ownership.

Citadel is a holding company specializing in the financing of small- and medium-size companies.