LOS ANGELES—Green Globe International, Inc. announced the company’s intention to move operations and management of the Green Globe brand back to Green Globe Limited, a U.K. corporation that owns the brand, and to sell a controlling interest in the brand to one or more third parties recognized in the industry who would manage the brand’s activities going forward. This would allow the public company to more efficiently pursue emerging opportunities in the green space within the United States and in other underserved regions overseas. Green Globe International, an 88 percent majority owner of Green Globe Limited, intends to maintain a minority interest in the brand and is currently working to establish a current value for the Green Globe brand.
“In acquiring majority interest in the Green Globe brand in February 2008, the company took on a major task, with licensees and affiliates around the world, all with differing license and affiliate agreements covering certain territories and with individual rights and responsibilities,” said CEO and Managing Director Steven R. Peacock. “Since the acquisition, there has been a period of renegotiation with existing brand stakeholders, as well as the signing of new licensees for certification, environmental auditing, consulting, and other brand services.
“Management believes that now is the time to move operations of the brand back to Green Globe Limited, while retaining an ownership percentage, in order to separate the focus and goals of the public company from that of the brand and to allow it to move freely and quickly to take advantage of opportunities in the U.S. market and in underserved regions abroad,” Peacock adds. “The move is expected to strengthen the balance sheet of the public company without a substantial impact on current revenue streams. For the brand, it becomes a private company once again with a management team known, respected and capable of managing a globally recognized brand with licensees, affiliates and clients around the world.
“Certain members of the advisory team have already started the process of establishing an evaluation of the brand for purposes of discussion with the founders and Green Globe International’s valued licensee, Green Globe Certification, as well as seeking out interest from outside parties,” Peacock says. “Updates on the progress of this transition and the strategy for the public vehicle going forward will be forthcoming. It is expected that this process will be relatively short.”
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