ADDvantage Technologies Group, Inc. (NASDAQ:AEY), announced on March 10, it has joined with YKTG Solutions, LLC, to deconstruct decommissioned communications towers in 13 states and then warehouse the decommissioned equipment on a short-term basis. ADDvantage will hold 49 percent of the joint venture while YKTG takes the majority 51 percent stake. The work is being done for an unidentified “major U.S. wireless provider.”
ADDvantage said the joint venture is expected to generate approximately $1 million in pretax income for the Broken Arrow, OK-based operation.
“We continue to grow our operational capabilities and increase our scale across the U.S. to drive growth in our telecom business,” commented David Humphrey, President and CEO of ADDvantage Technologies. “We are proud to announce this strategic joint venture with YKTG as it opens a new opportunity for us in the service business. We also anticipate generating additional revenues by processing decommissioned equipment received from this agreement through our recycling services program, and by selling additional equipment to this major U.S. wireless provider, utilizing our partnership with YKTG.”
“YKTG is excited to have ADDvantage Technologies as a strategic partner to work on our most recent multi-million dollar award to support the deconstruction program for a major wireless provider,” said Roscoe C. Young II, Founder, President and CEO of YKTG. “In addition, we hope to keep our relationship with ADDvantage in place to cover other near-term opportunities we expect to be awarded from other wireless and cable providers in 2016 and 2017.”
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