ALPHA SOLARCO ACQUIRES MANUFACTURING FACILITY
ALPHA SOLARCO ACQUIRES MANUFACTURING FACILITY CINCINNATI, Feb. 13 /PRNewswire/ -- Alpha Solarco Inc.
(NASDAQ: ASCO), a leading developer of solar concentrator electric power systems solely fueled with the sun's energy, today announced the signing of a contract for purchasing the assets of State Machine Products, a manufacturing firm located in Dry Ridge, Ky.
"Our primary interest is to acquire companies which contribute to lowering our product costs," said Edward C. Schmidt, president of Alpha. "This vertical integration will significantly lower costs and has the potential to contribute significantly lower costs and has the potential to contribute substantially to corporate cash flow." A newly formed, wholly owned subsididary, to be known as Alpha Manufacturing Group, Inc. will operate with the purchased assets. Currently the firm has a $1.6 million contract backlog of Department of Defense orders for Army personnel field equipment. The sale, to be closed pending a customary due diligence investigation, is for an approximate total price of $3.5 million, consisting of $500,000 cash, $1.6 million in debt assumption and $1.25 million of Alpha Solarco common stock. Six month earnings released by Alpha Solarco on Jan. 14, 1992 indicated that Alpha Solarco had a net income of $1,130,995 on revenue of $1,706,799. The company's income is mainly from the first two phases of a joint venture contract signed in February 1991 with Qinhuangdao Electronic Co. of China. These sales included a one-time technology transfer plus the initial shipment of tooling. The company has 47,064,317 shares of common stock outstanding. The solar concentrator systems developed by Alpha are designed for public utility sized applications for producing electricity. -0- 2/13/92 /CONTACT: Edward C. Schmidt of Alpha Solarco, 513-771-1690/ (ASCO) CO: Alpha Solarco Inc. ST: Ohio IN: SU: TNM
LC -- CL017 -- 9758 02/13/92 12:37 EST
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|Date:||Feb 13, 1992|
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