Admiral Signs Letter of Intent to Acquire Industrial Sanitation Products Distributor and Also Completes KemEast Acquisition.TORONTO--(BUSINESS WIRE)--June 25, 1996--ADMIRAL SANITATION sanitation: see plumbing; sanitary science. Inc. (Alberta Stock Exchange Alberta Stock Exchange See Canadian Venture Exchange (CDNX). : ADS) Mr. Edward A. Bayer, President and 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 Admiral Sanitation Inc. ("Admiral") announced today the signing of a Letter of Intent to acquire all the issued and outstanding shares of a Toronto based private company which supplies sanitation and general maintenance products for a wide variety of industrial applications. Under the terms of the Letter of Intent, which is subject to regulatory and Board approval and the completion of a private placement, Admiral will acquire the company for $1,000,000 Cash, (subject to adjustment), payable $825,000 on closing and the remaining $175,000 twelve months after closing, provided certain sales targets are met. The transaction is expected to close on or before September 30, 1996. Over the last three years the target company's sales have grown at an average annual rate of 9 percent and net after tax profits at an average annual rate of 37 percent. Mr. Bayer stated that, with the integration of the two companies, Admiral's sales will increase to $5.7 Million, profitability to $0.08 per share and cash flow to $0.11 per share, for the year ending September 30, 1997. All products distributed by the target company are manufactured by various sub-contractors. This acquisition will therefore increase Admiral's manufacturing output, thereby improving efficiency and gross profit margins Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. . In addition, since the target company mainly supplies the industrial sector while Admiral primarily services the institutional market, this acquisition will give Admiral an entre into the lucrative industrial market. The company also has a well trained team of commissioned sales representatives who will be retained to service existing clients. These sales representatives will now be able to offer their industrial customers the entire range of Admiral's sanitation and water treatment products. Mr. Bayer also announced that Admiral had completed the acquisition of the assets of KemEast Sales Ltd., a Moncton, New Brunswick New Brunswick, province, Canada New Brunswick, province (2001 pop. 729,498), 28,345 sq mi (73,433 sq km), including 519 sq mi (1,345 sq km) of water surface, E Canada. based manufacturer and distributor of water treatment products, announced on April 17, 1996. Admiral is a manufacturer and supplier of quality environmentally friendly Environmentally friendly, also referred to as nature friendly, is a term used to refer to goods and services considered to inflict minimal harm on the environment.[1] sanitation, general maintenance and water treatment products to government departments, municipalities, institutions and corporations, particularly those engaged in the food processing Food processing is the set of methods and techniques used to transform raw ingredients into food for consumption by humans or animals. The food processing industry utilises these processes. industry. -0- The Alberta Stock Exchange has neither approved nor disapproved of the information contained herein. CONTACT: Admiral Sanitation Inc. Gary Perkins Born in 1937 in Abilene, Texas, Gary Perkins (July 14, 1937 - June 28, 1991) DJ, a man of major importance to the industry who began his radio career in 1957 at Midland Texas' KCRS where Roy Orbison and Buddy Holly used to drop their records off. , 905/479-2800 905/479-8608 (Fax) 800/225-2744 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion