Synergy Brands Closes E-commerce Strategic Alliance With Sinclair Broadcast Group
SYOSSET, NY--(BUSINESS WIRE)--Nov. 24, 1999--
Sinclair Exchanges $69.4 Million in Advertising, Media Services
and Cash for a 50% Equity Interest in BeautyBuys.com,
a Subsidiary of Synergy Brands;
Sinclair Also Purchases a 16.5% Equity Stake in Synergy Brands
Synergy Brands Inc. (NASDAQ: SYBR - news) today announced that it has signed a strategic agreement with Sinclair Broadcast Group, Inc. (NASDAQ: SBGI - news) that enables the companies to expand the revenue base and brand identity of their jointly owned e-commerce company, BeautyBuys.com Inc. (http://www.beautybuys.com.) Sinclair will provide approximately $69.4 million in television and radio airtime, media services and cash in exchange for a 50% equity interest in BeautyBuys.com.
BeautyBuys.com will receive advertising time throughout the broadcast day, including prime time across Sinclair's television and radio properties. The two companies plan to utilize their resources to make BeautyBuys.com one of the largest e-commerce beauty sites in the nation. BeautyBuys.com intends to utilize $3.0 million in television and radio airtime over the next three weeks to kick off its holiday promotions.
Sinclair also acquired a 16.5% equity stake in Synergy Brands for cash and additional media services. Sinclair will appoint three members to the BeautyBuys.com Board of Directors and one member to the Synergy Brands Board of Directors.
Henry Platek, President of Synergy Brands, stated that, ''by combining the merchandising and distribution expertise of our organization with the financial strength and media expertise of Sinclair Broadcast Group, we have created a powerful opportunity to increase shareholder value for both companies.'' BeautyBuys.com, Inc. plans to file for its initial public offering during the first half of 2000.
Mair Faibish, Chief Executive of BeautyBuys.com and Executive Vice-President of Synergy Brands, added, ''We believe that the integration of Sinclair's considerable broadcast, editorial, local online communities and media resources combined with BeautyBuys.com extensive product offerings, will allow BeautyBuys.com to become an industry leader.''
Len Ostroff, COO of Sinclair Ventures, Inc. (a wholly owned subsidiary of Sinclair Broadcast Group) commented, ''Our investment in BeautyBuys.com represents our first opportunity to demonstrate the power of our local television stations and to capitalize on the growth and future prospects of the Internet.''
BeautyBuys.com offers approximately 5,000 brand name women's and men's fragrances, cosmetics, wellness products, vitamins and nutritional supplements, and other health, beauty and gift items. BeautyBuys.com is also developing a separate Business-to-Business (B2B) platform.
Synergy Brands develops on-line companies that sell brand name consumer products. The company also owns Netcigar.com, Inc., an e-commerce company that offers premium hand made cigars, accessories, gifts and golf related items. The company plans to develop significant media and financial partnerships for the Netcigar.com, Inc. (http://www.netcigar.com) subsidiary in the near future. Synergy Brands can be reached at synergybrands.com.
Sinclair Broadcast Group, Inc. is a diversified broadcasting company that currently owns or programs 58 television and 52 radio stations. Upon completion of all pending transactions, Sinclair will own or program 58 television stations in 38 separate markets and six radio stations in one market. Sinclair's television group reaches approximately 24.4% of U.S television households and includes ABC, CBS, Fox, NBC, WB, and UPN affiliates.
Forward-Looking Statements
The matters discussed in this press release include forward-looking statements regarding, among other things, future operating results. In addition, when used in this press release, the words ''intends to,'' ''believes,'' ''anticipates,'' ''expects'' and similar expressions are intended to identify forward-looking statements. Such statements are subject to a number of risks and uncertainties. Actual results in the future could differ materially and adversely from those described in the forward-looking statements. The Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements that may be made to reflect any future events or circumstances.
--------------------------------------------------------------------------------
Contact:
Martin E. Janis & Company Public Relations
Hal Schweig
312/943-1100
|
