GENERAL AUTOMATION DOUBLES EUROPEAN PRESENCE
GENERAL AUTOMATION DOUBLES EUROPEAN PRESENCE ANAHEIM, Calif., Oct. 23 /PRNewswire/ -- General Automation Inc.
(AMEX: GA) announced today the formation of Eurosystems GA Ltd. and the signing of an agreement whereby its European operating subsidiaries and the Eurosystems Group of Companies would be acquired by the new company. The Eurosystems Group is a seven-year-old third- party maintenance (TPM) provider organization and reseller of IBM equipment. Being acquired by the new company are the GA operating subsidiaries in France, Belgium and Italy along with the Eurosystems operating companies in Germany, France and Belgium. At the same time, GA announced the closing of its German operating subsidiary effective Oct. 1, 1992.
The new group will be headquartered in the United Kingdom, where it is anticipated that trading operations will also be established. Chairman will be Paul Thompson, chairman of GA and of Sanderson Electronics PLC, while Terry Bowman and Ian Dawkins, principals responsible for the building of the Eurosystems Group, will act as chief executive and finance director, respectively. In announcing the formation of the new group, Leonard Mackenzie, president and chief executive officer of GA, said, "We are pleased at the opportunity of virtually doubling our size in Europe and at the same time acquiring the management services of the individuals who have been responsible for the establishment of the Eurosystems Group as a major European force. We regret the decision to close the GA German operation, however the economics of its continuation along with the much more substantial Eurosystems Germany operation were not viable. The compatibility of the GA and Eurosystems companies results from the fact that they both sell and service systems to the business market." It is anticipated that GA will initially hold a majority of the shares in Eurosystems GA Ltd. GA expects that the closing of its German subsidiary will result in a write-off of less than $500,000, which will be reflected in its Sept. 30, 1992, year-end results, which have yet to be announced. General Automation provides business computer systems, related system-level and vertical market application software and field service operations through a multinational network of computer marketing, support and service companies. General Automation Inc. is part of a consortium of companies with operations in the United States, United Kingdom, Continental Europe, Southeast Asia and the South Pacific. -0- 10/23/92 R /CONTACT: Len Mackenzie, president and CEO, or Don Rutherford of General Automation, 714-778-4800/ (GA) CO: General Automation Inc.; Eurosystems GA Ltd. ST: California IN: CPR SU:
KJ-JB -- LA029 -- 4794 10/26/92 12:41 EST
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|Date:||Oct 26, 1992|
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