HOLOPAK TECHNOLOGIES, INC. TO ACQUIRE ALUBEC INDUSTRIES, INC.
HOLOPAK TECHNOLOGIES, INC. TO ACQUIRE ALUBEC INDUSTRIES, INC. EAST BRUNSWICK, N.J., Sept. 17 /PRNewswire/ -- HoloPak Technologies, Inc. (NASDAQ: HOLO) said today that it signed a letter of intent to merge with Alubec Industries, Inc. (Montreal Stock Exchange: ALZ). Alubec is in the business of laminating aluminum foil to paper and paperboards for the printing and packaging industries. The Company also manufactures florist foil, food wrap, lids, interleaved sheets and decorating foil. Under the merger, Alubec will become a wholly-owned subsidiary of HoloPak. The merger will provide for the payment of cash and the issuance of HoloPak stock for Alubec stock with such cash and HoloPak stock having a total value of approximately $6.3 million (U.S.). The shares to be issued will represent approximately 6 percent of HoloPak's shares after the merger. The merger will also provide for the issuance of warrants for 200,000 HoloPak shares, at $10.00 per share, that will become exercisable if a certain earnings target is achieved during the three years after the merger. Alubec's earnings from continuing operations in 1991 were $1.2 million (Can.) on consolidated sales of $15.1 million (Can.). Prior to the merger, Alubec will distribute to its stockholders assets unrelated to its primary business that are valued at cost at approximately $1.0 million (U.S.). "The merger will increase our manufacturing capabilities and enable our expansion into new markets with new products," said David W. Jaffin, chief financial officer of HoloPak. "Alubec's manufacturing capabilities complement HoloPak's to a large extent. In particular, Alubec's expertise in paper, paperboard and packaging will give tremendous impetus to our introduction of embossed and metallized papers. Alubec has a long and profitable history and has a first-class management." The merger is subject to approval by the boards of directors of both companies and Alubec's stockholders, receipt of necessary regulatory approvals and execution of a definitive merger agreement. The transaction is expected to be completed by Dec. 31, 1992. HoloPak Technologies, Inc. is a leading specialty manufacturer of holographic images, hot stamp foils, diffractive films and laminates used to decorate or label a wide variety of products including packaging and promotional materials, greeting cards, paperback book covers, cosmetics, appliances, and sporting goods. Three-dimensional holograms are also used in security/anti-counterfeiting applications. -0- 9/17/92 /CONTACT: David W. Jaffin of HoloPak Technologies, Inc. 908-238-2883/ (HOLO) CO: HoloPak Technologies, Inc.; Alubec Industries, Inc. ST: New Jersey IN: SU: TNM
LR -- NY033 -- 0560 09/17/92 10:44 EDT
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|Date:||Sep 17, 1992|
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