Company Description

Description: Elevator Pitch Slide

Based in Houston, Additech is the only company to provide consumers with an automated system for cleaning and maintaining their automobile fuel systems ... right at the gas pump while they are pumping their gas.

Additech, designs, builds and operates a unique at-the-pump automobile engine maintenance system.  Additech’s system blends specialty fuel additives into fuel as it is pumped. These specially blended fuel system products clean vital engine parts as consumers drive.
 
The business uniquely combines patented technology, best-in-class fuel additives, a turnkey services model and long-term contracts with brand name retailers into a reliable, recurring revenue business. The robust growth of Additech’s revenues and the consistent recurring per-fuel pump sales confirms that consumers have adopted Additech’s efficient point of sale experience and vehicle performance benefits.
 

Additech and the Consumer

Additech helps consumers save fuel, reduce engine wear, and reduce emissions harmful to the environment.  Additech’s super-concentrated blend of fuel system cleaners and upper cylinder lubricants (custom engineered by Afton Chemical, a world-leader in fuel additive technology) can reduce a vehicle’s gas consumption up to 10% and reduce a vehicle’s harmful emissions up to 35%.  A 5% reduction in gas used, provides a 200% return on a consumer’s purchase of Additech fuel system treatments. 

The Additech service cleans carbon build-up on fuel injectors, intake valves, and combustion chambers – build-up that prevents complete fuel combustion and optimal fuel/air mix. In addition, the upper cylinder lubricant in Additech’s products reduces friction between an engine’s piston rings and cylinder wall – the top source of frictional power loss in engines today. 

Additech and the Retailer

The Additech system either attaches seamlessly to most existing gas pumps or can be built into Dresser Wayne’s new generation of gas pumps.  Either way, it turns unproductive space into profits. This provides retailers with a new and profitable revenue stream through product sales and at-the-pump advertising, without
capital investment by the retailer. Additech builds, finances, installs and operates its systems. Additech also performs all direct-to-consumer marketing at the fuel center.   

The Company has consistently demonstrated the ability to sell 10x to 12x (by dollar volume) the amount of bottled fuel additives sold “off the rack” creating an entirely new opportunity to grow the fuel additive category. Additech also offers services to run digital advertising on Additech’s at-the-pump systems and to provide remote pump sales monitoring services.

The Additech Business

During the last six years, management has focused on building the core, recurring revenue business by rolling out Additech’s patented fuel treatment system to fuel centers at three major retailers, Wal-Mart (operated by Murphy Oil USA), Kroger and HEB. 

Additech systems are now installed at over 4,500 fueling positions in 900 Fuel Centers across 16 States, predominantly in the South East region of the US.

Technology

The patented Additech fuel additive delivery system consists of an 18 inch wide Additech unit, manufactured and supplied by Additech, which is attached to the side of the fuel pump.  The system consists of both electro mechanical and computer control technologies which communicate with consumers at the pump and blend engine cleaners with fuel as it is being dispensed.

Additech's Inceptor™ technology enables easy integration with a fuel pump and Point Of Sale (POS) system. The Inceptor™ reads the messages being sent between a POS and a fuel pump and causes the Additech system to take appropriate actions at the different stages of a fuel transaction.  The Additech system includes a full-color 10.4 inch flat screen display and an eight button ATM-like interface.  Full motion video and audio capabilities at the pump enhance the consumer’s purchasing experience with multi-media instructions and advertising.

A secure wireless, data network connects all Additech systems installed at a fuel center with a server located in the kiosk and delivers real time POS integration, as well as remote transmission of sales data coupled with remote diagnostics and calibration of each Additech fuel system.

Additech & Dresser Wayne: The inFAD

Additech and Dresser Wayne jointly developed the inFAD – essentially the Additech technology inside the Dresser Wayne Ovation series gas pumps.  Development of the initial version of the inFAD was completed in July 2009 and over 300 units have been installed in HEB and Kroger.    The inFAD can also be implemented as a retrofit to existing Ovation gas pumps.

With over half of the market for installed and new fuel pumps in high volume retailers, Additech’s chosen market, combined with Dresser Wayne’s market reach, the two companies could conservatively roll out 2,000 new units per year.

Patents

The Additech system is protected by utility patents and design patents. The utility patents cover the process of dispensing and blending automotive fluids directly into a vehicle, and the process of dispensing and blending fuel additives into fuel. Additech’s design patents cover Additech’s interactive video display and selection console. Additech has preliminary filings for new patents in the area of merchandising at the gas island.

For information or inquiries, please contact Veena Peña, vpena@additech.com or (281) 988-4936.