U.S. ENERGY CORP. AGREES TO ACQUIRE THE BRUNTON CO.
RIVERTON, Wy., Dec. 7 /PRNewswire/ -- U.S. Energy Corp. (NASDAQ- NMS: USEG) has proposed to acquire all of the outstanding stock in The Brunton Co. ("Brunton") of Riverton, a manufacturer and/or marketer of transits, compasses, binoculars, knives and other outdoor sporting goods products. Brunton's products are sold to over 1,000 retailers including sporting goods outlets, mass merchants, catalog houses, cutlery shops, and post exchanges on U.S. military bases. U.S. Energy Corp. has owned a minority interest in Brunton since before 1975 (its current equity position approximates 32 percent). U.S. Energy will offer 276,460 shares of common stock for the remaining Brunton shares being a ratio of 1 share of U.S. Energy in exchange for each 20 shares of Brunton. This proposed transaction must be approved by Brunton Shareholders. For its fiscal year ended May 31, 1993, Brunton recorded net revenues of $3,561,700 and achieved a pretax profit of $405,200 ($267,500 after provision for income taxes). Assuming completion of the proposed merger, Brunton will continue to operate, under the direction of its current management, as a wholly owned subsidiary of U.S. Energy Corp. According to John L. Larsen, chairman and chief executive officer of U.S. Energy Corp., "Having been a minority shareholder in Brunton for many years, we are excited about the growth potential of its products within the retail community. The acquisition of Brunton will expand U.S. Energy's revenues and earnings, while we continue to prepare for contributions from our primary minerals projects during the second half of the decade." "Brunton's profit margins improved significantly during the 1993 fiscal year," noted Harold F. Herron, president of Brunton. Herron further stated, "as a subsidiary of U.S. Energy, we should have access to the capital necessary to expand the marketing and distribution of our expanding product line." U.S. Energy Corp. is a diversified company with interests in minerals exploration and development, oil and gas, engineering and construction. U.S. Energy and its joint venture partner Kennecott Uranium Co., are developing a world-class uranium resource at Green Mountain in south-central Wyoming. U.S. Energy, along with its majority-owned subsidiary, Crested Corp., and Seine River Resources Inc. (a non-affiliate) is developing a major gold mining property near Sutter Creek, Calif. The company also owns an interest in a world-class molybdenum deposit in Colorado and in other base and precious metals properties -0- 12/7/93 /CONTACT: John L. Larsen or Keith G. Larsen, 307-856-9271/ (USEG)
CO: U.S. Energy Corp.; The Brunton Co. ST: Wyoming IN: OIL SU: TNM
EH -- LA012 -- 1209 12/07/93 10:40 EST
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|Date:||Dec 7, 1993|
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