CPAC TO FURTHER INTERNATIONAL EXPANSION WITH ACQUISITION OF VENEZUELAN COMPANY
CPAC TO FURTHER INTERNATIONAL EXPANSION WITH ACQUISITION
OF VENEZUELAN COMPANY
LEICESTER, N.Y., Nov. 19 /PRNewswire/ -- CPAC, Inc. (NASDAQ: CPAK) a manufacturer of chemicals and pollution prevention equipment for the imaging industries, today announced that it has signed a letter of intent to acquire Fotoprocesos de Venezuela C.A. (Fotus) in Guarenas, Venezuela.
Thomas N. Hendrickson, CPAC president and CEO, stated that the company will enter into a 10-year management agreement with the existing shareholders of Fotus. He explained that the acquisition of Fotus fits well into CPAC's strategic plan to expand international chemical sales by establishing a physical presence in key countries. "The Andean Pact, formed by the unification of six South American countries will allow us to trade freely from our Venezuela plant. We expect this trade agreement will be the model for future South American unification."
Under a technology transfer made with CPAC, Inc. in December, 1988, the Venezuelan company has been manufacturing Black and White industrial chemicals made with raw materials supplied by CPAC, Inc. In exchange, CPAC, Inc. has received royalties on chemical sales in Venezuela an its export countries.
Hendrickson stated that once the acquisition is complete, Fotoprocesos de Venezuela will begin manufacturing color chemicals using formulas from CPAC's U.S. Trebla Chemical Company subsidiary. The color chemicals will be marketed in South America under the Fotus name.
According to Hendrickson, both companies have agreed to a closing date of Jan. 15, 1992.
/CONTACT: Wendy Clay or Kate Kreger of CPAC, 716-382-3223/
(CPAK) CO: CPAC Inc.; Fotoprocesos de Venezuela C.A. ST: New York IN: CHM SU: TNM SH-FC -- NY008 -- 4784 11/19/91 08:45 EST