WASHINGTON–(BUSINESS WIRE)–Apr. 14, 2016–
Liquidity Services, Inc. (NASDAQ: LQDT), a global solution provider in
the reverse supply chain with the world’s largest marketplace for
business surplus, today announced the award of its new Scrap Contract
with the Defense Logistics Agency (DLA) of the U.S. Department of
Defense (DoD) to manage and sell scrap assets generated by DoD
installations throughout the continental United States, Alaska, Hawaii,
Puerto Rico and Guam. The Company expects to commence operations under
the new Scrap Contract on September 1, 2016.
Under the terms of the new contract, Liquidity Services will acquire all
scrap property offered to it by the DLA and, in exchange, will pay a
revenue-sharing payment equal to 64.5% of the gross resale proceeds. The
Company will bear all of the costs for the sorting, merchandising and
sale of the property. The new contract has a 36-month base term with two
12-month extension options exercisable by the DLA. There is a 5-month
ramp-up period prior to the effective date of the new contract during
which time the Company will adjust its operations to conform to the any
new requirements under the contract.
Under the new scrap contract Liquidity Services will continue to serve
as the primary sales channel for DoD scrap property including base
materials and scrap metals such as ferrous and non-ferrous metals,
nickel alloy, rubber, paper and other miscellaneous materials. Assets
will be offered for sale through Liquidity Services’ online auction
to a global buyer base.
“We are pleased to extend our 16-year relationship with the DLA as the
largest online sales channel in the U.S. for scrap material,” said Bill
Angrick, chairman and chief executive officer of Liquidity Services. “We
have sold over 2.5 billion pounds of scrap material for the DoD and will
continue to build on our expertise in the management, marketing and sale
of these assets to generate the highest return for our government
partner and our shareholders.”
About Liquidity Services
Liquidity Services is a global solution provider in the reverse supply
chain with the world’s largest marketplace for business surplus. The
company partners with global Fortune 1000 corporations, middle market
companies, and government agencies to intelligently transform surplus
assets and inventory from a burden into a liquid opportunity that fuels
the achievement of strategic goals. The company’s superior service,
unmatched scale and ability to deliver results enable it to forge
trusted, long-term relationships with over 8,000 clients worldwide. With
nearly $6 billion in completed transactions, and approximately three
million buyers in almost 200 countries and territories, the company is
the proven leader in delivering smart surplus solutions. To learn more
about Liquidity Services, please visit LiquidityServices.com.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160414006594/en/
Source: Liquidity Services, Inc.
Liquidity Services, Inc.
Julie Davis, 202-558-6234
Director, Investor Relations
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