CELEBRITY, INC. SIGNS LETTER OF INTENT TO ACQUIRE ALDIK ARTIFICIAL FLOWER CO., INC.
TYLER, Texas, Nov. 29 /PRNewswire/ -- Celebrity, Inc. (NASDAQ-NMS: FLWR) today announced it has signed a letter of intent to acquire Aldik Artificial Flower Co., Inc. of Valencia, Calif. Aldik is a leading importer and distributor of high-quality artificial flowers and Christmas-related household decorations with annual revenues of approximately $28 million. Celebrity President and CEO Robert H. Patterson, Jr. said, "Two years ago, Celebrity evaluated its business to assess its strengths, opportunities and capital needs. Considering the very favorable trends in the marketplace and our position in the industry, we concluded the timing was right to embark on an expansion program that would apply our expertise to new products and new markets. In particular, we identified four areas where we saw substantial opportunity to add value to Celebrity. The first resulted in the acquisition of Magicsilk in mid- 1992, which moved us in a major way into the rapidly growing high-end silk flower segment. The second was completion of our initial public offering in December 1992. The third opportunity led to our recent business combination with The Cluett Corporation, one of the leaders in the high-quality artificial tree and floral arrangement segment. And finally, the proposed acquisition of Aldik rounds out our near-term strategy by providing a much-needed West Coast base of operations, broadening our product offerings, contributing additional management depth, and facilitating access to several important markets in which we don't have a major presence." According to Patterson, Aldik is and has been a highly respected force in the marketplace for nearly 20 years, with emphasis in the western United States. "Their West Coast distribution capability, combined with a large, experienced sales force and a network of sales showrooms, proved very attractive to us. From an operational perspective, Aldik enjoys a seasoned management team. By combining forces with them, we will immediately increase our market share, but more importantly we will effectively eliminate several years of start-up expenses and distractions in realizing our goal of establishing a major western base of operations. Considering our objectives, Aldik is an excellent fit. "Our product lines are very similar," Patterson continued, "but where Celebrity has focused on large craft stores and mass merchants, Aldik has really excelled at developing close ties to wholesalers, distributors, manufacturers and small independent retailers, a franchise that would take years for us to replicate. Further, Aldik is very strong in the market for Christmas-related floral and home decoration items, a large market in which Celebrity has not participated in a major way. Clearly, their assets, skills and West Coast presence are very complementary with our strategy." Celebrity is one of the largest suppliers of high-quality artificial flowers, arrangements, foliage, trees and flowering bushes to craft store chains, mass merchants, other retailers and wholesale florists. Celebrity, Inc. will issue notes and 750,000 shares of Celebrity common stock in connection with the transaction, which is subject to the execution of a definitive agreement and will be accounted for as a purchase. Because the acquisition is not expected to be completed until the end of December, it will have little or no impact on Celebrity's operating results until the third fiscal quarter ending March 31, 1994. -0- 11/29/93 /CONTACT: Robert H. Patterson, Jr., chairman of the board, or James R. Thompson, vice president - finance of Celebrity, Inc., 903-561-3981/ (FLWR)
CO: Celebrity Inc. ST: Texas IN: HOU SU: TNM
GK-PS -- NY017 -- 8161 11/29/93 09:31 EST
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|Date:||Nov 29, 1993|
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