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CONSUMERS DISTRIBUTING COMPLETES EARLY REDEMPTION OF $65 MILLION OF PREFERENCE SHARES HELD BY UNIVA

 TORONTO, Dec. 6 /PRNewswire/ -- Consumers Distributing Inc. today announced that it has completed a transaction with Univa Inc. (formerly Provigo Inc.) enabling Consumers to effect the early redemption of two issues of 7 percent preference shares. The preference shares, with a total capital value of $65 million, were part of the consideration paid by Westbourne Management Group Ltd., a Toronto-based investment firm, and Ackermans & van Haaren NV, a diversified Belgian company, when they purchased Consumers from Provigo in April 1991.
 Consumers will redeem the first issue, due April 1994, for $11 million cash and a $5.7 million four-year subordinated note. Univa has agreed to convert the second issue of preference shares, which has a capital value of $48.3 million, due April 1997, into 9.47 million common shares of Consumers Distributing. This is equivalent to about 19 percent of the company's total outstanding common equity on a fully diluted basis. The remaining common shares will continue to be held by the company's current owners.
 "This agreement is consistent with the excellent relationship we have had with Univa since we purchased Consumers in 1991," said Consumers' Chief Executive Officer William L. Young. "We're pleased that this transaction will mean that Univa will continue to have an interest in the continuing growth and profitability of Consumers Distributing. The redemption of these two issues of preference shares further strengthens our already sound balance sheet. We expect that Consumers will end the year with about $100 million in common equity and only the $5.7 million note as long-term debt."
 "Consumers Distributing is enjoying another strong year and expects to achieve increases in both its sales and profits. In 1992, Consumers' sales exceeded $600 million and operating income amounted to $16 million. The company is continuing its steady expansion, adding 13 more stores this year to bring the total number of showrooms to 235 across Canada.
 "We believe that Consumers Distributing has been able to achieve annual gains in its sales and profits despite the poor economy," Mr. Young continued, "because our tight control of costs has enabled us to offer Canadian consumers very competitive prices, and exceptional value and service."
 Consumers Distributing, founded more than 35 years ago, is the dominant catalogue and showroom retailer in Canada in such product lines as jewelry, watches, home entertainment equipment, small appliances, toys and other juvenile goods, personal care products, and sporting goods. The company employs more than 5,000 people on a full- and part- time basis in its 235 stores serving communities across Canada. Its catalogues are distributed to 5.5 million homes, enabling Canadians to select from more than 6,000 quality, brand-name items which they can collect from a conveniently located showroom.
 -0- 12/6/93
 /CONTACT: William L. Young, chief executive officer of Consumers Distributing, 416-405-4000/


CO: Consumers Distributing Inc.; Univa Inc. ST: Ontario IN: REA SU:

CK -- NY080 -- 0835 12/06/93 13:28 EST
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Publication:PR Newswire
Date:Dec 6, 1993
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