NEW YORK, April 7, 2010 (GLOBE NEWSWIRE) -- Encompass Group Affiliates, Inc. (OTCBB:ECGA), a leader in after market services and parts distribution for a wide range of high-tech products and consumer electronics, today announced it will relocate the divisional headquarters of subsidiary Encompass Service Solutions, Inc. (ESS) from Metro Orlando to one of its existing repair and distribution facilities in Lawrenceville, Ga., just north of Atlanta.
Encompass CEO Wayne Danson said transferring ESS headquarters to Georgia will position the company for continued growth, and more appropriately matches cost synergies between its Service and Distribution divisions.
"While the Florida facility has served us well for over 20 years, the Metro Atlanta area is more conducive to our strategic business growth plans," said Danson. "With approximately 200,000 square feet of space in our existing facility, we can easily expand to offer additional services. Plus, the centralized geographic location provides us convenient transportation access to serve our customers across the country."
The existing ESS operation in Metro Atlanta principally comprises board-level repair for a host of electronic products, as well as returns management services. This will be augmented to include repair services, advance exchange and asset recovery for finished goods, including laptop and desktop computers, printers, monitors, GPS units, and MP3 players, plus specialty board-level repair for medical equipment. Accounting, call center functions, account management and IT positions will also be based out of the location. Additionally, the facility will feature a new environmentally-controlled tech service room.
The Metro Atlanta facility also houses a segment of operations for company subsidiary Encompass Parts Distribution, Inc. (EPD), a top provider of high quality electronic parts and accessories for hundreds of the most popular brands on the market. ESS and EPD synergies will enable Encompass to expand its Green Choice program, in which ESS salvages working parts from unrepairable electronics, recertifies them for use and transfers to EPD for distribution. ESS then separates all remaining product materials – metal, glass and plastics – for recycling to help protect the environment and reduce waste going to landfills.
Through participation in Partnership Gwinnett, an area economic development initiative, Encompass is able to take advantage of financial incentives and employee training programs for the relocation. These incentives and the cost reductions realized by combining the two ESS facilities are expected to save the company more than $300,000 on an annual basis.
"In addition to achieving significant operational efficiencies by relocating the ESS headquarters to our existing facility in Metro Atlanta, we are able to leverage a variety of highly-beneficial subsidies offered by Gwinnett County and the state of Georgia as part of their business development efforts," said Danson.
About Encompass Group Affiliates, Inc.
Encompass Group Affiliates, Inc., a New York-based company, is a market leader in forward and reverse supply chain logistics, repair services and asset management for a wide variety of high-tech products and consumer electronics. Encompass, through its wholly-owned subsidiaries, Encompass Parts Distribution, Inc., Encompass Service Solutions, Inc. and Encompass International, provides comprehensive electronics parts distribution, asset recovery, returns management, reverse logistics services, and depot repair and refurbishment services. For more information about Encompass, please visit our website at encompass.com.
The Encompass Group Affiliates, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=7301
This release and oral statements made from time to time by Encompass Group Affiliates, Inc.'s representatives concerning the same subject matter may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by introductory words such as "expects," "anticipate," "plans," "should," "believes," "will," or words of similar meaning, and by the fact that they do not relate strictly to historical or current facts. Many factors may cause actual results to differ from forward-looking statements, as well as inaccurate assumptions and a broad variety of risks and uncertainties, some of which are known and others of which are not. Known risks and uncertainties include those identified from time to time in the reports filed by Encompass Group Affiliates, Inc. with the Securities and Exchange Commission, which should be considered together with any forward-looking statement. No forward-looking statement is a guarantee of future results or events, and one should avoid placing undue reliance on such statements.