EAI Launches Tanon Express With Boston Acquisition.WEST LONG BRANCH, N.J.--(BUSINESS WIRE)--Jan. 6, 1998--EA Industries, Inc. (NYSE NYSE See: New York Stock Exchange : EA) announced today the agreement to acquire Boston Area based Service Assembly Inc. (SAI). In a stock swap deal, SAI becomes a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of EA Industries, Inc. and the first TANON EXPRESS facility. SAI earned approximately $750,000 prior to distributions last year on $3,700,000 of sales. TANON EXPRESS facilities are dedicated to quick turn and prototype electronics manufacturing services Electronic manufacturing services (EMS) is term used for companies that design, test, manufacture, distribute and provide return/repair services for electronic component and assemblies for original equipment manufacturers (OEMs). located in close proximity to customer engineering and manufacturing operations. TANON EXPRESS engages the customer early in the product cycle and provides unparalleled quick turn and short lot runs indicative of the customer's needs during the final stages of product design and the early stages of product start up. As the product matures and the volume increases, production can be transferred to one of Tanon Manufacturing, Inc. volume manufacturing facilities. It is planned to have several TANON EXPRESS facilities established as satellites around each of the Tanon volume manufacturing factories. The advantage to our customers of adding Tanon EXPRESS is the broadening of the services we offer. We offer the customer what they need when they need it and where they need it over the life of their product. We offer the customer quicker time to market which is critical in the highly competitive, fast paced electronics industry. The advantage to EA Industries of adding TANON EXPRESS is wider geographic presence, improved operational efficiencies, faster growth and greater profitability. "Our market research indicated the overwhelming appeal of the concept of TANON EXPRESS," said Frank G. Brandenberg, EAI (Enterprise Application Integration) Refers to various techniques used to share data and business processes in large enterprises. When companies acquire another organization, disparate information systems have to be made to work together. 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. . "We chose SAI as our initial acquisition due to the extraordinary customer satisfaction of SAI's clients, their New England location, their excellent process controls, their profitability, and the owners appreciation of the synergy gained by the acquisition. We expect the deal to be formally closed in early January, with financial performance fully consolidated for the first quarter of 1998." EA Industries, Inc., through its wholly owned subsidiary, Tanon Manufacturing, Inc. is a diversified contract manufacturer serving the electronics industry from manufacturing facilities in West Long Branch, NJ and Fremont, CA. EAI's stock has been traded on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. since 1962. -0- Except for historical matters contained in this press release, statements made in this press release are forward-looking and are made pursuant to the 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. provisions in 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. Investors are cautioned that these forward-looking statements reflect numerous assumptions and involve risks and uncertainties which may affect EA's business and prospects and cause actual results to differ materially from these forward looking statements, including loss of current customers, reductions in orders from current customers, or delays in ordering by current customers, failure to obtain anticipated contracts or orders from new customers, or expected order volume from such customers, failure to obtain financing, higher material or labor costs, unfavorable results in litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. against EA, economic, competitive, technological, governmental, and other factors discussed in EA's filings with the Securities and Exchange Commission. CONTACT: Investor Relations Investor relations The process by which the corporation communicates with its investors. Claudia Rose, 732/229-1100 ext. 511 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion