POLYPHASE CORPORATION ANNOUNCES EXECUTION OF DEFINITIVE AGREEMENT TO PURCHASE OUTSTANDING STOCK OF TEXAS TIMBERJACK, INC.
DALLAS, Nov. 23 /PRNewswire/ -- Polyphase Corporation (AMEX: PLY) today announced that it has executed a definitive agreement for the purchase of 96 percent of the outstanding stock of Texas Timberjack, Inc. ("Texas Timberjack"). Texas Timberjack, a privately-held Texas corporation, is a major equipment distributor and finance company serving the logging industry. Current management is to be retained under long-term employment agreements. Texas Timberjack reported sales of $23.4 million for its most recent fiscal year ended March 31, 1993, with pre-tax profits in excess of $3.2 million. In discussing the transaction, a Polyphase spokesman stated that the purchase of Texas Timberjack represents another step in Polyphase's plans for significant growth through acquisition and diversification. He added that the Texas Timberjack's financial strength and its continuous record of growth in revenues and profits will be the foundation for future acquisitions Polyphase is presently reviewing in related industries. The purchase price of the acquisition is $13.5 million cash and 100,000 shares of Polyphase Series A preferred stock. A cash payment of $500,000 provided by current operations and previously deposited with the seller will be applied against the purchase price at closing. The acquisition is subject to shareholder approval. Polyphase is in the process of preparing a proxy statement for a special shareholders' meeting, with the date to be announced. Polyphase is a diversified holding company with operations in Texas, Oklahoma, New York and Pennsylvania. -0- 11/23/93 /CONTACT: James Rudis of Polyphase Corporation, 214-490-4214/ (PLY)
CO: Polyphase Corporation; Texas Timberjack, Inc. ST: Texas IN: PAP SU: TNM
TM -- NY075 -- 7435 11/23/93 17:16 EST
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|Date:||Nov 23, 1993|
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