Hirsch International acquires midwest distributor of embroidery machines, Sewing Machine Exchange.
Based in Chicago, SMX, a privately-held company, distributes single and multi-head machines manufactured by Tajima Industries Ltd. (Hirsch's primary supplier) and 1, 4, and 12 head machines and related software, manufactured by Melco Embroidery Systems. SMX has a contractual right to distribute Tajima equipment in Illinois, Iowa, Minnesota, Wisconsin, North and South Dakota and Nebraska, and Melco products in 11 midwestern states.
SMX reported unaudited revenues of approximately $27.8 million and $7.4 million for the fiscal year and three-month period ended April 30, 1996, respectively.
Henry Arnberg, chairman, president and chief executive officer, said, "With this acquisition we gain new and very valuable geographic distribution rights for our Tajima product line, and broaden the scope of our value added products. SMX's organization and management team complement our own and will prove to be an invaluable tool to our continued growth and leadership in the industry. We are well-positioned to capitalize on the advantages that SMX has developed in its territory." Ron Krasnitz, chairman of SMX, added, "We are extremely excited about joining forces with Hirsch International. Hirsch's financial strength and marketing acumen, its continuing investment in its sales and support infrastructure and its continued focus on technology and the embroidery entrepreneur, offer many synergies for our two organizations."
Arnberg added, "We have entered a new era in fiscal 1997. This is our first step in the strategic acquisition arena since our acquisition of Pulse Microsystems in fiscal 1995, but by no means our last. We will continue to aggressively seek out opportunities to expand our business."
CONTACT: Hirsch International Corp.
Kenneth Shifrin, 516/436-7100
KCSA, New York
Adam I. Friedman/Joseph Mansi
212/682-6300, ext. 215/205
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|Date:||Jun 10, 1996|
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