99 Cents Only Stores Has Agreed in Principal, Subject to Due Diligence, to Acquire a 48 Percent Interest in Universal International Inc. for $4 Million, Payable in a Combination of Cash and Merchandise.CITY OF COMMERCE, Calif.--(BUSINESS WIRE)--Oct. 21, 1997--99 Cents Only Stores (NYSE NYSE See: New York Stock Exchange :NDN NDN Indian NDN Naples Daily News (Daily news paper in Naples Florida) NDN Non Delivery Notification NDN National Data Network NDN Necdin NDN New Democratic Network NDN Next Door Neighbor NDN Nevada Donor Network ) and Universal International Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :UNIV UNIV University UNIV Universal ) Tuesday announced they have agreed in principal, subject to due diligence Research; analysis; your homework. This term has caught on in all industries, because it sounds so "wired." Who would want to do analysis or research when they can do due diligence. See wired. , whereby 99 Cents Only Stores will acquire 4.5 million newly issued shares of Universal's common stock for an investment value of $4 million. This will represent approximately 48 percent of the outstanding shares of Universal. The purchase price shall be paid in the form of $2 million in cash and $2 million in merchandise. This investment and relationship with 99 Cents Only Stores will provide Universal with access to additional retail expertise and an extensive mix of consumable merchandise through 99 Cents Only Stores' Bargain Wholesale operation. David Gold
David Gold is an English businessman. , president of 99 Cents Only Stores, said: "Our purchase of Universal's stock will benefit both companies. Moreover, Universal's higher price points and geographic diversity offer additional volume and margin improvement opportunities. Also, Universal's 40 years experience in the discount industry along with its seasoned buying organization will further strengthen 99 Cents Only Stores relations with its suppliers and its ability to source closeout closeout, closure the finalization of a feeding program in a feedlot. The cattle are sold and a balance sheet is struck which includes the costs of feeding and housing or confining them. and reorderable merchandise." Mark Ravich, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Universal, said: "We are very excited about having 99 Cents Only Stores become a significant shareholder and join our board. They are one of the premier deep-discount retailers in the country today. With our combined abilities to source product and their consumable product mix focus, we believe that our turnaround will be completed in the near future and that universal will have the ability to grow and become a significant deep-discount retailer." The closing is expected to occur within the next 30 days and is subject to completion of due diligence, board approval, negotiating ancillary agreements and other closing conditions. Universal international sells quality closeout merchandise through its 49 Only Deals midwestern retail stores, 22 Odd's-N-End's upstate New York Upstate New York is the region of New York State north of the core of the New York metropolitan area. It has a population of 7,121,911 out of New York State's total 18,976,457. Were it an independent state, it would be ranked 13th by population. retail stores and is opening 8 Only Deals stores in Texas. Through its subsidiary, Universal Asset-Based Services Inc., it also provides inventory valuation and liquidation services. 99 Cents Only Stores, the nation's oldest existing one-price retailer, operates 51 deep-discount stores, all in Southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, , and a wholesale division called Bargain Wholesale. 99 Cents Only Stores emphasizes name-brand consumables, priced at an excellent value, in attractively merchandised clean stores. In a separate news release dated Tuesday, Oct. 21, 99 Cents Only Stores reported net income of $4.8 million for the third quarter ended Sept. 30, 1997, a 33.7 percent increase over the same period last year, with earnings per share of 31 cents. -0- Note to Editors: 99 Cents Only Stores news releases and information available on the World Wide Web at http://www.businesswire.com/cnn/ndn.htm or via fax by calling 888/835-0099 toll free. --99 Cents-- CONTACT: 99 Cents Only Stores, City of Commerce Eric Schiffer, senior vice president-finance, 213/881-9912 or Universal International Inc., New Hope, Minn. Mark Ravich, CEO, 612/533-1158 |
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