Printer Friendly

New York Bagel Enterprises, Inc. To Acquire Lots A' Bagels, Inc. of Colorado Springs

-- Acquisition of Seven Restaurants Gives New York Bagel Dominant Market
 Presence in Colorado Springs --


WICHITA, Kan., Nov. 26 /PRNewswire/ -- New York Bagel Enterprises, Inc. (Nasdaq-NNM: NYBS) today announced that it has entered into an agreement to acquire certain of the assets and assume certain of the liabilities of Lots A' Bagels, Inc., of Colorado Springs, Colorado.

New York Bagel will acquire Lots A' Bagels' operating assets, seven leased restaurants and a bagel commissary located in Colorado Springs and Monument, Colorado, for approximately $2.7 million in cash, debt, common stock purchase warrants and the assumption of certain operating liabilities. The purchase price may increase or decrease due to an earnout provision. The Company anticipates that the acquisition will be completed during December 1996.

Robert J. Geresi, Chairman, President and Chief Executive Officer of the Company, commented, "New York Bagel is pleased to have reached an agreement with Lots A' Bagels. The qualities that New York Bagel emphasizes, such as high quality food, large portions and great service, are all present in Lots A' Bagels. In addition, Lots A' Bagels' leading position in the Colorado Springs market will complement our current Company-owned restaurants' geographic locations." Mr. Geresi continued, "New York Bagel is different from other bagel companies in that we derive over 90% of our revenues from Company restaurant operations. We have historically excelled at operating restaurants and achieving superior margins at the restaurant level. Because of these operational abilities, we believe that, when we acquire restaurants such as those operated by Lots A' Bagels, we can enhance and improve their already impressive operations."

"This is a significant acquisition for New York Bagel, which fits our expansion strategy of aggressive growth and increasing stockholder value," said Paul R. Hoover, Vice President-Strategic Planning. Mr. Hoover continued, "With the completion of this acquisition, the Company anticipates having at least 32 Company-owned restaurants by the end of 1996, which is in excess of our previously stated year-end unit development schedule."

New York Bagel said the acquisition is expected to strengthen its position in Colorado through Lots A' Bagels' dominant position in the Colorado Springs market. New York Bagel franchisees operate 4 restaurants in the metropolitan Denver area. New York Bagel expects to achieve greater operating efficiencies by spreading its management costs over the additional restaurants.

Lots A' Bagels had net sales of approximately $3.0 million in calendar 1995, and $3.1 million for the ten-month period ended October 31, 1996.

Although New York Bagel and Lots A' Bagels have entered into a definitive Asset Purchase Agreement, consummation of the proposed transaction is subject to a number of conditions, including, without limitation, obtaining landlord consents and completion of due diligence.

Except for the historical information contained herein, the matters discussed in this release are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially, including, without limitation, risks associated with the Company's ability to successfully and timely integrate the Lots A' Bagels restaurants and bagel commissary, the Company's ability to develop, construct, acquire or franchise additional restaurants in accordance with the Company's development schedule, management of quarter to quarter earnings and increases in operating costs. These risks are set forth in the "Risk Factors" section of the Prospectus portion of the Company's Form S-1 Registration Statement and its Form 10-Q report for the quarter ended September 29, 1996. Updated information will be periodically provided by the Company as required by the Securities Act of 1933 and the Securities Exchange Act of 1934.

Headquartered in Wichita, Kansas, New York Bagel Enterprises, Inc. owns and franchises New York Bagel restaurants that serve generous portions of fresh, high quality food with fast, friendly service at an attractive price- value relationship. New York Bagel restaurants provide a selection of up to 20 varieties of bagels that are made from scratch, boiled and baked throughout the day in the traditional "New York style."

SOURCE New York Bagel Enterprises, Inc.
 -0- 11/26/96


/CONTACT: Paul R. Hoover, Vice President-Strategic Planning of New York Bagel Enterprises, 316-267-7373/

(NYBS)

CO: New York Bagel Enterprises, Inc. ST: Kansas IN: RST SU: TNM

KL-EQ -- LATU027 -- 4139 11/26/96 07:32 EST http://www.prnewswire.com
COPYRIGHT 1996 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1996 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Nov 26, 1996
Words:698
Previous Article:Dave & Buster's Enjoys Record Grand Opening in Bethesda, MD
Next Article:Make Sure Holiday Gifts Survive the Melee
Topics:

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters