Document 8OQ5YwRDp5r4na5Lv2D0wxm3o

A business perspective brand the brand companies, inc. McGCon 200722 The Brand Companies: A Business Perspective HISTORY AND TRANSITION Since our inception in 1961, Brand has been predominantly a specialty contractor. As recently as a few years ago, the company's revenues were dominated by the application of thermal insulating materials to new coal fired power plants, refineries and the installation of fire-rated seals in new nuclear power plants. Today, the U.S. is in a period of adequate electrical generating capacity, and therefore, few new power plants are being built. As a result, our thermal insulation and fire-rated seal activities have become minimal contributors to Brand's overall service mix. When it was apparent that the traditional markets would no longer be available, the company sought out new opportunities for using our highly trained field supervisors, engineers and estimators. We felt that this infrastructure was our company's most valuable asset and was largely the reason why Brand had historically enjoyed an unparalleled reputation. A market study revealed that the removal of asbestos from structures built before the mid-1970s had many of the same requirements as our earlier businesses, and Brand embarked on a program of retraining its large work force. At the same time, we recognized that Brand not only had to develop the knowledge and skills required to do the work, but the understanding that asbestos is a very hazardous and toxic material, requiring dedication to impeccable procedures and performance. We believe that philosophy has led to the pre-eminent position in asbestos abatement services that Brand now maintains. The asbestos removal market is very large, and the significant growth opportunities dictated the rapid expansion of many of our systems and capabilities to realize the benefits and continue offering high quality service. We decided to seek a synergistic partner that could assist in our advancement. As a result, on September 27,1988, Brand reached an agreement with Chemical Waste Management, the largest U.S. company performing hazardous waste management services, wherein CWM became a 49 percent owner of Brand for a substantial amount of cash. In addition, CWM agreed to provide sales and marketing assistance, disposal site usage and a number of other services and systems which would be beneficial to our company. While asbestos removal has become a large part of our strategic plan, it is by no means the only significant marketplace in which we participate. There are several other contracting activities that were either started internally or acquired that have been growing and show considerable future promise. Brand also has some unique product manufacturing capabilities that are developing into significant contributors to our company. With the shifting in our business mix that has occurred in the last few years, we now classify our business into four distinct segments: Asbestos Abatement, Technical Services, Manufacturing and New Construction. The 15 companies and 25 branch offices that currently comprise Brand are all engaged in one or more of these segments. McGCon 200/23 ASBESTOS ABATEMENT Our mission is excellence, not only in the performance of the work on schedule and in full compliance with all governmental agency standards and regulations, but also in the mitigation of future potential liabilities for our customers. Brand has complete document retention systems and a comprehensive jobsite safety program to add to the customers' comfort that they are not incurring long-term liability exposures during the abatement process. The company's project work force fully understands the nature of the risk and work rules are rigidly enforced. We believe we are further unique in that we offer an experienced and professional counseling service to our customers in the area of public, employee and tenant relations, which is valuable to those undertaking abatement in occupied buildings or other high-visibility areas. We can assist in developing a communications strategy and plan, as well as in the presentation of information to affected groups to help alleviate undue concern for personal health and safety during abatement activity. Because Brand is one of the most financially substantial contractors in the abatement industry, we are able to offer high quality bonding when required and an insurance package that few competitors can match. Asbestos Abatement has become a meaningful part of Brand's business. In 1985, it represented approximately 3 percent of revenues; in 1986, it accounted for 15 percent; in 1987, it reached 50 percent; and, in 1988 and 1989, it is expected to continue to increase. TECHNICAL SERVICES An area which continues to provide a large portion of Brand's revenues is Technical Services. This includes maintenance, repair, renovation, retrofitting and plant life extension for facilities in the utility, refining, chemical, petrochemical and paper manufacturing industries. Because these industries are aging and their plants are becoming outmoded, there is a continuing demand for Brand's maintenance and retrofit services. Extending the life of aging plants, installing the latest technology and refurbishing facilities have created considerable demand for Brand's technical services. Technical services offered by Brand include nondestructive examination, installation of radiation and fire protection seals, application of thermal insulation, high temperature fireproofing, marine construction services and scaffolding. The comprehensive range of marine construction services Brand offers gives us a competitive advantage in the water-based facility market. Our services include fabrication, installation, maintenance and repair, performed both above anc below water. For many years several groups within Brand erected their own scaffolding, which was used to allow our workers access to otherwise unreachable areas. Three years ago we started a scaffold erection and rental business, and today we have grown to where there are offices and warehouses on the east and west coasts and in the midwest. Our dedicated staff of field supervision, coupled with management's commitment to a quick response to our industrial clients' requirements, have made Brand Scaffold Services a widely known and respected organization. Technical Services accounted for approximately 19 percent of total revenues in 1985; 21 percent in 1986: 27 percent in 1987; and. in 1988 and 1989. should reach about 30 percent. l^loGCon 200724 MANUFACTURING Brand has developed specialty high-performance products to meet the unique needs of the industries we serve. For applications requiring a high degree of thermal and/or chemical resistance, the company manufactures silicone foams in a variety of shapes and properties as well as silicone coated fabrics and elastomeric sheets. These products are of interest to the transportation, defense, aerospace, chemical and medical equipment industries. Other manufactured items include radiation shielding products for nuclear spent fuel storage racks, specialized fire rated nuclear sealing products and a range of neutron absorbing compounds for a variety of containment uses. Fabrication capabilities include sheet metal, insulation panels and removable insulation covers. Principal markets for these products include electric utilities, refining and petrochemical plants. The manufacturing and fabrication segment has accounted for 6-8 percent of total revenues for the past several years and is likely to continue to do so. NEW CONSTRUCTION For the past 27 years, the core of Brand's business has been New Construction, particularly in the electric generating industry. This activity consists of installation of thermal insulation and sheet metal coverings, fire and radiation-rated seals, high temperature fireproofing and the erection of scaffolding, piping and structural steel. Brand installed all of the thermal insulation and protective jackets for the pumping stations on the Alaskan pipeline and for more than 100 major power plants and refineries. New Construction accounted for approximately 72 percent of total revenues in 1985 and 57 percent of total revenues in 1986. Because of currently diminished demands for new facilities, this segment generated only 13 percent of our revenues in 1987 and is expected to decrease to 7 percent in 1988. and even lower in 1989. Our reputation and inherent capability still exist: and. when these industries have a rebirth, we shall be ready to resume our leadership position OUR ORGANIZATION As of November 1,1988, Brand had a full time staff of 410 salaried employees, including executive officers, engineers, operations managers, sales representatives, construction superintendents, project managers, accounting and clerical support employees. In addition, we employ hourly-craft personnel, whose number fluctuates depending on the size and number of projects in which the company is engaged. Our management group has remained intact for many years, which is a considerable benefit in the undertaking of new challenges. Over the years. The Brand Companies have demonstrated an ability to redirect our resources to capitalize on new opportunities. Through internal development and acquisition. Brand has penetrated growth markets and established its leadership in these areas. The company's objective is to meet the changing needs of the marketplace with confidence and continue to deliver the high quality services and products that have made us a leader. McGCon 200725 The Brand Companies BISCO Products, Inc. MANUFACTURING TECHNICAL SERVICES CONSTRUCTION ASBESTOS ABATEMENT Brand Scaffold Services, Inc. * a Biscraft, Inc. a Biscraft Northeast, Inc. a Brand Asbestos Control Co., Inc. (BASCO) a 'a Brand Examination Services & Testing Co. (BESTCO) a Brand Industrial Services, Inc. (BISCO Construction) *a a a Brand Insulations, Inc. (National Construction) *a Brand Mid-Atlantic, Inc. *a a *3 Brand Sabine Industries * a Brand/Site Services, Inc. a Inspection Service, Inc. Nuclear Utility Construction a Thermo Tech, Inc. a *a *a Underwater Construction Corporation denotes main source of business a McGCon 200726 Occupant and Public Relations Maintaining good public, employee and tenant relations is often a critical aspect of your project, especially when abatement is scheduled in occupied buildings with high visibility or free public access. Media relations may become a necessity as well, in which case communications planning can pave the way for positive relations. Through special resources on our staff, Brand provides expert guidance in managing communications with building occupants, the general public and the media. Proof of Performance Just doing asbestos abatement work properly is not enough-you should be able to prove that it was done properly, with full consideration for health and . safety, if your company ever becomes involved in litigation. "Proof of performance" through effective compliance documentation is an important service we provide for you and your counsel. Brand's docu ment production, retrieval and control system, derived from our experience as a supplier to the nuclear industry, could be critical in a court of law. 200728 WlcGCon brand THE BRAND COMPANIES, INC ASBESTOS ABATEMENT GROUP Project References COMMERCIAL REAL ESTATE Client: Contact: Contract Value: Scope: Completion Date: Contractor: BORG WARNER BUILDING Chicago, Illinois Collins, Tuttle and Chicago, Illinois Tom Garr i ty (312) 332-6660 Company $250,000 - $500,000 Asbestos removal of pipe and duct insulation and reinsulation May 1988 Brand Asbestos Control Co., Inc. (BASCO) Client: Contact: Contract Value: Scope: Completion Date: Contractor: FLORIDA NATIONAL BANK Jacksonville, Florida Paul Buchan (904) 731-8680 $500,000 - $ 1 , 000,000 Soundproofing removal, piping removal in mechanical room and reinsulation February 1987 Thermo Tech, Inc. McGCon 200700 Project References COMMERCIAL REAL ESTATE Client: C on t ac t : Contract Value: Scope: Completion Date: Contrac tor: MERCHANTS NATIONAL BANK Cedar Rapids, Iowa Willis Schnell, Vice President (319) 368-4330 $500,000 - $ 1,000,000 Asbestos abatement of sprayed-on fireproofing on deck and beams August 1988 Brand Asbestos Control Co., Inc. (BASCO) Client: Contact: Contract Value: Scope: Completion Date: Contrac tor: PAN AM BUILDING New York, New York H.M. Hughes Company New York, New York Joe Carrubba (212) 772-7790 ' $1,000,000 - $5,000,000 Asbestos removal and re-spray Current Brand Asbestos Control Co., Inc. (BASCO) McGCon 20070 1 Project References COMMERCIAL REAL ESTATE Client: Contact: Contract Value: Scope: Completion Date: Contrac tor: SUN BANK Orlando, Florida Ken Greco (407) 237-4616 $ 1,000,000 - $5,000,000 Fireproofing on steel beams various floors and mechanical room Current Thermo Tech, Inc. Client: Contact: Contract Value: Scope: Completion Date: Contrac tor: TISHMAN CONSTRUCTION Dallas, Texas Tishman Construction Los Angeles, California Jim Os true (213) 477-7033 S 100,000 - $250,000 Asbestos abatement-acoustica 1 ceilings and re-spray; encasement of sprayed-on fireproofing at hotel in Dallas, Texas August 1987 Thermo Tech, Inc. McGCon 200702 Project References COMMERCIAL REAL ESTATE Client: Contact: Contract Value: Scope: Completion Date: Contractor: UNITED AIRLINES Elk Grove Village, Illinois Eric Youngquist (312) 952-6073 $100,000 - $250,000 Removal of sprayed-on fireproofing on deck and beams in office area and general storeroom January 1987 Brand Asbestos Control Co., Inc. ( BASC0) C ient : 1 n t a c t : Contract Value: Scope : Coapletion Date: Contrac tor : USAA San Antonio, Texas Bob Rupp (512) 498-1038 $500,000 - $1,000,000 Asbestos removal from piping and equipment - removal of sprayed on fireproofing and respray July 1988 Thermo Tech, Inc. 200703 McGCon Project: References MANUFACTURING Client: Contact: Contract Value: Scope : Completion Date: Contrac tor: GENERAL DYNAMICS Fort Worth, Texas Jeff Kenney (817) 777-7964 $250,000 - $500,000 Asbestos removal from piping and equipment - reinsulation January 1988 Thermo Tech, Inc . Client: Contact: Contract Value: Scope: Completion Date: Contractor: GENERAL MOTORS Detroit, Michigan Jim Keenan, Manager of Safety (313) 554-6190 $1,000,000 - $5,000,000 Asbestos abatement of ceiling spray-on and various piping s y s terns 1988 Brand Industrial Services, Inc. McGCon 200704 Project References Client: Contac t : Contract Value: Scope: Completion Date: Contrac tor: MANUFACTURING HANES PRINTABLES Winston-Salem, North Carolina Hanes Group Headquarters Winston-Salem, North Carolina Tony Kaj s (919) 744-2610 $ 1,000,000 - $5,000,000 Asbestos removal, various areas and types July 1986 Brand Asbestos Control Co., Inc. (BASCO) Client: Contac t : Contract Value: Scope: Completion Date: Contractor: JOHN DEERE Waterloo, Iowa Dave Quillin (319) 292-4870 $250,000 - $500,000 Annual asbestos abatement maintenance contract May 1988 Biscraft, Inc. 200705 Project References MANUFACTURING Client: Contact: Contract Value: Scope: Completion Date: Contractor: JOHNSON AND JOHNSON New Brunswick, New Jersey Roger Hollenback (201) 524-6711 $100,000 - $250,000 Removal of transite panels June 1987 Brand Mid-A11 antic, Inc. Client: Contact: Contract Value: Scope: Completion Date: Contractor: LTV STEEL Plants: Youngstown, Ohio C amp bell, Ohio Aliquippa, Pennsylvania LTV Steel Cleveland,Ohio Wayne Gould Gerry Leasure (216) 622-5065 Over $5,000,000 Asbestos removal at decommissioned plants Current Brand Asbestos Control Co., Inc. (BASCO) McGCon 200706 Project References MANUFACTURING Client: Contact: Contract Value: Scope: Completion Date: Contractor: RCA Camden, New Jersey Jean O'Leary (609) 338-6376 $100,000 - $250,000 Terra contract - various asbestos abatement projects Current Brand Mid-A11 ant ic, Inc McGCon 200707 Project References Client: C on t ac t : C o n t r a c t Value: Scope: C omp1e t ion Date: C o n t r a c tor: Client: C o n t ac t : C o n t r a c t Value: Scope: C omp1e t ion Date: C o n t r a c tor: REFINING ATLANTIC REFINING & MARKETING Philadelphia, Pennsylvania Marie SRapic (215) 339-2036 $1,000,000 - $5,000,000 Annual asbestos abatement maintenance contract Current Brand Mid-A11 ant ic, Inc. BP OIL, INC. Marcus Hook Refinery Marcus Hook, Pennsylvania John Heidengren (215) 499-7000 $500,000 - $1,000,000 Annual asbestos abatement maintenance contract Current Brand Mid-At 1 ant ic, Inc. McGCon 200703 Project References Client: Contact: Contract Value: Scope: Completion Date: Contractor: Client: Contact: Contrac t Value: Scope: Completion Date: Contractor: REFINING SUN OIL COMPANY Marcus Hook Refinery Marcus Hook, Pennsylvania Don Davis (215) 447-1058 $500,000 - $1,000,000 Annual asbestos abatement maintenance contract Current Brand Mid-A11 antic, Inc. TENNECO OIL COMPANY Chalmette, Louisiana Ron Prestenbach Ed Megas on Jack Cohn (504) 942-1472 $100,000 - $250,000 Asbestos removal and reinsulation on piping and vessels Current Thermo Tech , Inc. 200709 McGCon Project References Client: Contac t : Con tr ac t Value: Scope: C omp 1 e t ion Date: C o n t r a c tor: REFINING TEXACO, U.S.A. Port Arthur Refinery Port Arthur, Texas Scott Watjus (409) 989-7062 $1,000,000 - $5,000,000 Annual asbestos abatement maintenance contract Current Thermo Tech, Inc. Mcq Cq r 200? TO Project References GOVERNMENT Client: Contact: Contract Value: Scope: Completion Date: Contractor: G.A.O. PENTHOUSE Washington, D.C. Terry DeBiase (202) 275-0180 $ 1,000,000 - $5,000,000 Asbestos abatement throughout facility Current Thermo Tech, Inc. Client: Contact: Contract Value: Scope : Completion Date: Contractor: MIAMI FEDERAL BUILDING Miami, Florida General Services Miami, Florida Bill Abbott (305) 536-5751 Administration $1,000,000 - $5,000,000 Asbestos abatement of sprayed-on fireproofing on beams and deck Current Thermo Tech, Inc. McGCon 2007 1 1 Project References GOVERNMENT Client: Contact: Contract Value: Scope: Completion Date: Contrac tor: U.S. POSTAL SERVICE Kansas City, Missouri U.S. Postal Service Overland Park, Kansas Sy Perkins (913) 831-5430 $ 500,000 - $ 1,000,000 Asbestos removal from piping and HVAC systems - reinsulation July 1988 Thermo Tech, Inc. Client: Contact: Contract Value: Scope: Completion Date: Contrac tor: U.S. POSTAL SERVICE Toledo Main Post Office Toledo, Ohio The Pickering Firm, Toledo, Oh io Davis Kerr (901) 726-0810 Inc. $1,000,000 - $5,000,000 Fireproofing removal and reinsulation 1986 Brand Asbestos Control Co., Inc. (BASCO) McGCon 200712 Project References Client: Contact: Contract Value: Scope: Completion Date: Contractor: Client: Contact: Contract Value: Scope : Completion Date: Contractor: POWER/UTILITY DETROIT EDISON Detroit, Michigan Mar c Rich (313) 897-0212 $1,000,000 - $5,000,000 Annual asbestos abatement at various plants 1988 Brand Industrial Services, Inc. MONTANA-DAKOTA Utilities Power Plant Bismark, North Dakota John Verwey (701) 222-7917 $250,000 - $500,000 Total abatement of retired power plant December 1987 Brand/Site Services, Inc. McGCon 200713 Project References POWER/UTILITY Client: Contact: Contract Value: Scope: Completion Date: Contractor: PHILADELPHIA ELECTRIC COMPANY Philadelphia, Pennsylvania Frank Koza (215) 841-4757 $500,000 - $1,000,000 Asbestos removal - various January 1988 Brand Mid-Atlantic, Inc. (V/lcGCon 2007 14 Project References Client: Contact: Contract Value: Scope: Completion Date: Contractor: AIRPORT DALLAS/FORT WORTH AIRPORT Dallas, Texas Jim Lee (214) 574-5593 $1,000,000 - $5,000,000 Asbestos abatement and re-spray of fireproofing Current Thermo Tech, Inc. McGCon 200715 Project References FOOD PROCESSING Client: Contact: Contract Value: Scope : Completion Date: Contractor: M&M/MARS Division of Mars, Inc. Hackettstown, New Jersey Bob Comer (201) 850-2527 Under $100,000 Piping and vessel abatement February 1987 Brand Mid-A11 ant i c , Inc. Client: C on t ac t : Contract Value: Scope: Completion Date: Contractor: PURINA MILLS, INC. St. Louis, Missouri Paul Luther (314) 768-4630 $ 1,000,000 - $5,000,000 Asbestos removal of pipe and vessel insulation and reinsulation at numerous locations October 1988 Brand Asbestos Control Co., Inc. (BASCO) McQCon 200716 Project References PETROCHEMICAL Client: Contac t: Contract Value: Scope : Complatioa Date: Contrac tor : E.I. duPONT deNEMOURS & CO. Orange, Texas E.I. duPont deNemours & Co. Sabine River Works Orange, Texas Chip Johnson (409) 886-9283 $ 1,000,000 - $5,000,000 Annual asbestos abatement maintenance contract and reinsulation June 1988 Thermo Tech, Inc. Client: Contact: Contract Value: Scope: Completion Date: Contrac tor: TEXACO CHEMICAL COMPANY Port Neches, Texas Don Anglin (409) 724-4687 $1,000,000 - $5,000,000 Annual asbestos abatement maintenance contract - and reinsulation Current Thermo Tech, Inc 200-117 Project References PULP AND PAPER Client: Contact: Contract Value: Scope: Completion Date: Contrac tor : Client: Contact: Contract Value: Scope: Completion Date: Contrac tor : GAYLORD CONTAINER CORPORATION Bogalusa, Louisiana Stuart Parker (504) 732-8820 Under$100,000 Asbestos removal and reinsulation on piping February 1988 Thermo Tech, Inc. JAMES RIVER CORPORATION St. Francisv i 11e, Louisiana W. L. Woody Evans (504) 635-3311 ?1,000,000 - $5,000,000 Annual asbestos abatement maintenance contract and reinsulation Current Thermo Tech, Inc. McGc n 2007 78 Project References Client: Contact: Contract Value: Scope: C ompletion Date: Contractor: HOSPITAL NAZARETH HOSPITAL Philadelphia, Pennsylvania Sister Micheal (215) 335-6000 $1,000,000 - $5,000,000 Entire hospital - removal of spray-on ceiling insulation and replace with drop ceiling November 1986 Brand Mid-At1antic, Inc. 200719 McGCon Project References Client: Contact: Contract Value: Scope: Completion Date: Contractor: RETAIL MONTGOMERY WARDS Clearwater, Florida Contek, Inc. Clearwater, Florida Cathy Hamilton (813) 791-4966 $ 1 , 000,000 - $5,000,000 Asbestos abatement of spray-on fireproofing on beams Novembe r 19 88 Thermo Tech, Inc. NOTE : The individuals named here have authorized us to use their names as project references. This constitutes a sample of previous and current contracts only, and is not intended to represent the total number of asbestos abatement projects completed or now under way by The Brand Companies. Because of the confidential nature of our work with clients, and at the request of certain clients, we do not list a number of significant projects here. In 1987, revenues generated by asbestos abatement activities were approximately $60 million, which represents approximately 50 percent of total operating revenues for the company. For more information, please contact The Brand Companies, Inc., Marketing/Sa 1es Department at ( 800 ) 84 7-7 1 57 or ( 3 1 2 ) 298-1200. Effective November 1988 4/11/89-2 McGCon 20072 1 Project References PHARMACEUTICAL Client: Con t ac t : Contract Value: Scope: C ompletion Date Contrac tor: MERCK AND COMPANY Rahway, New Jersey Nick Bisonni Gary Fullerton (201) 574-4771 $ 1 , 000,000 - $5,000,000 Asbestos removal piping and towers Current Brand Asbestos Control Co., Inc. (BASCO) Client: Contact: Contract Value: Scope: Completion Date: Contrac tor: MERCK CHEMICALS, INC. S t o n ewa11 Plant Elkton, Virginia Nancy Co r nwe11 (703) 298-4126 $500,000 - $ 1 , 000,000 Remove asbestos insulation from piping and equipment reinsulation January 1988 Thermo Tech, Inc. (VlcGCon 200720