LONGWOOD GROUP TO ACQUIRE MANDEL-KAHN INDUSTRIES STOCK
LONGWOOD GROUP TO ACQUIRE MANDEL-KAHN INDUSTRIES STOCK NEW YORK, May 20 /PRNewswire/ -- The Longwood Group, Ltd.
(NASDAQ: LONG) today announced that it had finalized its agreement in principle to acquire all of the stock of Mandel-Kahn Industries, Inc., a Houston-based distributor of health and beauty care and general merchandise products to supermarkets and other stores in the Southwest. Pursuant to such agreement, Longwood is committed to making a $1.5 million equity investment in Mandel-Kahn and has already begun making advances against its commitment. The closing of the acquisition is scheduled to occur shortly.
As a result of the above transaction, Mandel-Kahn's existing lender, Texas Commerce Bank, has agreed to continue to finance the company's operations on more favorable terms. Bill Wootton, the chief operating officer of Mandel-Kahn, and Joel Mandel, chairman of Mandel-Kahn and one of its founders, have stated that they welcome the association of Mandel-Kahn with Longwood and are pleased with the new financing terms that have been arranged, which will enable Mandel-Kahn to meet its business objectives. In January 1992 Longwood acquired the stock of C-B/Murray Corporation, Inc., a North-Carolina based distributor of specialty food products as well as health and beauty care items and general merchandise, to supermarkets and other stores in the southwestern, southeastern and midatlantic regions of the U.S. John A. Selzer, chief executive officer of Longwood, stated, "Although C-B/Murray and Mandel-Kahn will become wholly-owned subsidiaries of Longwood and will operated independent of each other, we believe that the acquisition the C-B/Murray and Mandel-Kahn businesses will result in benefits to both companies, as each has strengths upon which the other can draw. We are also pleased that Texas Commerce Bank will be continuing its long-standing relationship with Mandel-Kahn and are confident that the equity investment will enable Mandel-Kahn's business to grow in the way we all believe it is capable of doing." Effective May 26, 1992, Longwood will change its name to "DRS Industries, Inc." to reflect that Longwood's primary business has changed to service merchandising. In addition, on May 5, 1992, Longwood filed a Form S-1 Registration Statement with the Securities and Exchange Commission relating to proposed underwriting public offering of 2,000,000 units, each consisting of two shares of common stock and two common stock purchase warrants. The public offering will be made only by means of a prospectus, which is not being distributed at this time. A registration statement relating to the securities to be sold in such public offering has been filed with the Securities and Exchange Commission but has not yet become effective. Such securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This announcement shall not constitute an offer to buy nor shall there be any sale of such securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state. -0- 5/20/92 /CONTACT: John A. Selzer or John D. Gioioso of the Longwood Group, 212-980-9670/ (LONG) CO: Longwood Group, Ltd.; Mandel-Kahn Industries, Inc. ST: New York, Texas IN: SU: TNM
AH-LR -- NY069 -- 2389 05/20/92 14:35 EDT
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|Date:||May 20, 1992|
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