D.G. Jewellery of Canada Ltd. Announces New Joint Venture; Exclusivity Supply Agreement Expected to Provide U.S. $40.0 Million Over Five Years.NORTH YORK North York Former city (pop., 2001: 608,288), southeastern Ontario, Canada. In 1998 it joined the cities of Etobicoke, Scarborough, Toronto, and York and the borough of East York to become the City of Toronto. North York became a borough in 1967 and a city in 1979. , Ontario--(BUSINESS WIRE)--March 17, 1998--D.G. Jewellery of Canada Ltd. (Boston Stock Exchange The Boston Stock Exchange (BSE) is a regional stock exchange located in Boston, Massachusetts. The third-oldest stock exchange in the United States, it was founded in 1834. On October 2nd, 2007 Nasdaq agreed to acquire BSE for $61 million. :DGJ)(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 :DGJLF) announces it has entered into an agreement with Silverman's Jewelers Consultants Inc. of Mount Pleasant, S.C., to set up a joint venture in Canada. The Canadian joint venture to be named Silverman Retail Solutions Inc., will be owned equally by the two partners. Silverman's Jewelers Consultants Inc. is one of America's largest liquidators of jewelry and other commodities. The company expects operations to commence by July 1998 and to provide positive contribution to earnings in the first year. Jack Berkovits, 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 D.G. Jewellery, commented: "We consider ourselves very proud and fortunate that Stuart Fetter, CEO, and his board at Silverman's Jewelers Consultants Inc. have selected us to be their partners in Canada. Not only does this new affiliation bring together two jewelry industry leaders, but it advances D.G.'s stated objective of enhancing shareholder value by diversifying the company's operations into other retail commodities." Under the terms of the agreement, D.G. Jewellery will be responsible for sourcing and supplying all jewelry product to be offered for sale at Silverman's Canada. It is expected that D.G.'s revenues from this supply agreement will exceed U.S. $40.0 million over the next five years. In February 1998, D.G. Jewellery announced the acquisition, through a U.S. subsidiary, of the business and assets of Houston based Aviv Inc., a primary manufacturer of diamond bridal jewelry for US $4.0 million, including assumption of debt. Aviv's customers include major jewelry retailers, department stores This is a list of department stores. In the case of department store groups the location of the flagship store is given. This list does not include large specialist stores, which sometimes resemble department stores. , shopping networks and independent retailers. Its customers are 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. as well as Italy and Germany. Aviv's volume in fiscal 1997 was US $12.5 million. At the same time, D.G.'S U.S. subsidiary, Aviv Inc., acquired the assets of New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of Gold and Diamond Exchange Inc., a factory outlet store An outlet store or factory outlet is a retail store in which manufacturers sell their stock directly to the public through their own branded stores. The stores can be can be brick and mortar or online. with revenues in excess of US $1.0 million. This is Aviv's first foray into retail factory outlets. In November 1997, D.G. Jewellery acquired through a U.S. subsidiary the assets and business of the Diamonair division of Litton Systems Inc. for US $6.5 million. Diamonair manufactures and wholesales cubic zirconia jewelry set in 14KT gold to major department stores and jewelry retailers throughout the United States. D.G. Jewellery of Canada designs, manufactures and wholesales mass-produced diamond, gemstones and synthetic stone jewelry to major jewelry retailers, shopping networks, mass merchants, department stores and liquidators. Customers include Walmart, Kmart, J.C. Penney, Zale's Gordon's Sterling, Marks and Spencer, Fred Meyer, QVC QVC Quality Value Convenience QVC Question Valid Command , Value Vision, The Shopping Channel, and many others. Revenues for calendar 1996 amounted to approximately US $15.0 million, with net income at 11 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. . The company expects to release improved results for 1997. This press release may contain forward looking statements that involve risk and uncertainties, including statements related to the introduction of new products. The actual results could differ materially from those anticipated in the forward looking statement as a result of factors including delays in product development and manufacturing and the introduction of new technology. CONTACT: D.G. Jewellery of Canada Ltd. Jack Berkovits, 416/665-8844 Gary Davis, 416/665-8844, Ext. 232 |
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