Cameron Ashley Signs Letter of Intent to Acquire Gerard Demers Inc. and Demers Express Inc.DALLAS--(BUSINESS WIRE)--June 3, 1998--Cameron Ashley Building Products, Inc. (Nasdaq:CABP CaBP Calcium Binding Protein CABP Coalition Air Battle Planning CABP Certificate of the Arab Board of Pediatrics ) announced today that it has signed a letter of intent to acquire the assets of Gerard Demers Inc. and Demers Express Inc. located in St.-Pierre, Quebec. The Demers companies are a regional distributor of building material products with estimated annual sales of approximately $30 million (US). Products are transported by Demers Express Inc., which services solely Gerard Demers. The Demers' trade territory constitutes primarily the central portion of the province of Quebec. Terms of the transaction were not disclosed. Ronald R. Ross, Chairman and Chief Executive Officer, commented: "The Demers acquisition is a very good strategic fit for our Canadian operations. The transaction will deepen deep·en tr. & intr.v. deep·ened, deep·en·ing, deep·ens To make or become deep or deeper. deepen Verb to make or become deeper or more intense Verb 1. our presence in the Quebec province, further expand our Canadian line of building material products and enhance our cross-selling opportunities in this very important area. Further, the well-established managementteam of Gerard Demers will be a strong addition to our operations in Quebec, and we will also benefit from the long-standing expertise of Demers Express in transportation." Cameron Ashley Building Products, Inc. is a distributor of a broad line of building products that are used principally in home improvement, remodeling remodeling /re·mod·el·ing/ (re-mod´el-ing) reorganization or renovation of an old structure. bone remodeling and repair work and in new residential construction. The Company distributes its products through a network of 145 branches located throughout the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and Canada. Product lines include roofing, millwork, pool and patio patio In Spanish and Latin American architecture, a courtyard open to the sky within a building. A Spanish development of the Roman atrium, it is comparable to the Italian cortile but provides more seclusion, possibly due to Moorish custom. The patio of the contemporary U.S. enclosure materials, insulation, siding, steel products, industrial metals and a variety of other building materials Building materials used in the construction industry to create . These categories of materials and products are used by and construction project managers to specify the materials and methods used for . . -0- Safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. for forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. : Except for historical information contained herein, certain statements in this release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Forward-looking statements may be indicated by phrases such as "believes", "anticipates", "expects", "intends", "foresees", "projects", "predicts", "forecasts" or similar words and involve known and unknown risks and uncertainties which may cause the Company's actual results in future periods to differ materially from forecasted results. Among the factors that could cause results to differ materially are the following: (i) business and economic conditions in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , (ii) business and economic conditions in the regional markets in which the Company operates, (iii) adverse homebuilding conditions including those related to weather and interest rates, (iv) the ability to make acquisitions at reasonable prices and achieve synergies upon integration, (v) reliable and cost-effective supply of products from manufactures, and (vi) technology risks in integrating information systems. Certain of these risks are more fully described in the Company's 10-Q and 10-K filings with the Securities and Exchange Commission (SEC). Copies of the Company's 10-K and 10-Qs are available from the SEC or may be obtained upon request from the Company. The Company does not undertake any obligations to update the information contained herein, which speaks only as this date.
CONTACT: CAMERON ASHLEY BUILDING PRODUCTS, INC.
J. Andrew Kerner
Executive Vice President & CFO
(214) 860-5100
or
Morgen-Walke Associates
June Filingeri/Jennifer Angell
Media contact: Stan Froelich/Eileen King
(212) 850-5600
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