MODAMI SERVICES ENTERS INTO LETTER OF INTENT TO ACQUIRE LASORDA FOODS HOLDING CORP.
BOCA RATON, Fla., Aug. 11 /PRNewswire/ -- Modami Services (NASDAQ: MDMI) has announced today that the company has entered into a Letter of Intent to acquire 100 percent of Lasorda Foods Holding Corp. Inc. and its wholly owned subsidiary, Lasorda Foods, Inc. in a stock for stock transaction. Under the terms of the proposed merger Tommy Lasorda, the majority shareholder of LFHI and Steven Fox, the president of LFHI, who collectively own a majority of LFHI's outstanding shares, will receive additional shares of Modami common stock in connection with the retirement of certain loans made to LFHI by them. Tommy Lasorda is the spokesperson for all products sold under his name subject to prior contractual restrictions. The agreement is contingent upon completion of due diligence, preparation of documents, and the approval of the board of directors of both companies. Further terms were not disclosed. Lasorda Foods manufactures and markets Lasorda Pasta sauces, and Cactus Jack Salsa dips throughout Southern California. Modami Services holds the exclusive worldwide license for patents supporting a food processing technology that reduces dairy products, fruits, vegetables, and other natural food products to dry formulations which retain all nutrients and vitamins, but have shelf lives of minimally several years. Having completed commercialization of the technology, the company recently introduced its first line of products which includes all natural yogurt, tomato flakes, shakes, and confections. Paul B. Kravitz, president, said, "The acquisition will add a new dimension to products currently being distributed and sold by Modami by allowing it to expand its own product lines as well as utilizing this well known personality for products bearing his name." Management at both Modami and Lasorda Foods say the two companies will target several specialty markets where Lasorda Foods has particular expertise and relationships, including military commissaries both in the U.S. and overseas, sporting arenas, special relationships with major retailers and supermarkets. According to Paul Kravitz, Modami's president, "We intend to move as quickly as we can to complete due diligence and close this transaction before the end of the year." -0- 8/11/93 /CONTACT: Paul B. Kravitz, president, COO and CFO of Modami Services, 407-995-0605; or Ira Weingarten of Equity Communications, 602-323-6787, for Modami Services/ (MDMI)
CO: Modami Services; Lasorda Foods Holdings Corp. Inc. ST: Florida IN: FOD SU: TNM
RC-AW -- FL004 -- 1594 08/11/93 10:39 EDT
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|Date:||Aug 11, 1993|
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