Coventry Industries Corp. Signs Letter of Intent to Acquire Healthcare Employee Leasing Company.BOCA RATON Boca Raton (bō`kə rətōn`), city (1990 pop. 61,492), Palm Beach co., SE Fla., on the Atlantic; inc. 1925. Boca Raton is a popular resort and retirement community that experienced significant industrial development in the 1970s and 80s. , Fla.--(BUSINESS WIRE)--June 17, 1998--Coventry Industries Corp. (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 SmallCap: COVN) has signed a letter of intent to acquire CommuniCare P.E.O., a Cincinnati, Ohio-based employee leasing company with projected annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. revenues of approximately $105 million and projected earnings of approximately $1.5 million, it was announced today by Robert Hausman, Chairman and President. A definitive agreement is expected to be completed within 30 days. CommuniCare P.E.O. is a newly formed subsidiary of CommuniCare Health Services health services Managed care The benefits covered under a health contract , a provider of homecare, nursing, rehabilitation rehabilitation: see physical therapy. and special care services, including Alzheimer's care, acute and sub-acute care, physical, speech and occupational therapies and other related services. CommuniCare P.E.O. anticipates having approximately 6,300 employees leased to healthcare customers in 24 states. Steve Rosedale, Chairman and President of CommuniCare Health Services, stated: "We are in the people business. Our success is in recruiting world class people and improving their productivity through world class people systems. These include recruitment, HR personnel systems, benefits administration, motivation and retention. Our formation of CommuniCare P.E.O. allows us to develop our resources to improve our current services and offer them to others." Hausman said: "The acquisition of Communicare P.E.O. is a perfect fit for Coventry Industries. With Coventry's proven experience in the employee leasing field, we expect to be able to help CommuniCare Health Services reduce employee-related costs in many critical areas, including payroll, benefits administration, workers' compensation workers' compensation, payment by employers for some part of the cost of injuries, or in some cases of occupational diseases, received by employees in the course of their work. , recruitment and information management services. In addition, as Coventry makes additional related acquisitions, CommuniCare Health Services will benefit from even greater economies of scale." Coventry also announced that after completing an exhaustive 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. , the company has terminated its letter of intent to acquire KIWI International Holdings, as the two parties could not reach a mutually acceptable agreement. Coventry Industries Corp., whose subsidiaries include companies involved in manufacturing, marketing and distribution, and employee staffing services, is a growth-oriented small-cap company. Statements about the Company's future expectations, including future revenues and earnings, and all other statements in the press release other than historical facts are "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. " within the meaning 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. The company intends that such forward-looking statements be subject to the safe harbors created thereby. Since these statements involve risks and uncertainties and are subject to change at any time, the Company's actual results could differ materially from expected results. CONTACT: Mark Wachs and Associates Mark Wachs, 212/832-2800 |
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