CNGR makes another acquisition, adds another $15 million to
this year's revenues.
Monday June 15, 12:58 pm Eastern Time
Company Press Release
Crown Group to Acquire Bengal Chemical, Inc.
DALLAS--(BUSINESS WIRE)--June 15, 1998--Crown Group, Inc. (Nasdaq:CNGR - news) today announced that it has entered into a Letter of Intent to acquire Bengal Chemical, Inc.
The transaction is subject to certain conditions, including the completion of due diligence by July 15, 1998. Terms of the transaction will not be disclosed until the parties enter into a definitive purchase agreement.
Bengal Chemical, Inc., headquartered in Baton Rouge, La., markets a line of insecticide products under the Bengal(R) brand name, primarily in the Southeastern United States. Its most popular product is a highly-effective roach spray, and it has developed other products to control wasps, hornets, fleas, fire ants, mosquitoes, spiders, gnats, crickets and houseflies. Bengal Chemical's sales for the current year are expected to approximate $15 million, and its primary customers include mass merchandisers, grocery stores and hardware stores.
''The sale of Bengal to Crown -- an aggressive, growth-oriented public company -- will allow us to take full advantage of the market potential of our unique and growing line of premium insecticide products,'' stated Robert LeBlanc, founder and president of Bengal Chemical, Inc. ''We look forward to our role as a member of The Crown Group family of companies.''
''Bengal Chemical benefits from tremendous customer loyalty, which has developed over the years as a result of the company's guarantee of product performance,'' observed Edward R. McMurphy, president and chief executive officer of The Crown Group. ''Bengal owns the EPA registrations, formulations and technology for all of its high-quality, premium insecticide products. We believe that Bengal's market share can be expanded significantly in a number of markets where household pests are a significant problem, particularly in the Southeastern U.S.''
The Crown Group seeks to enhance shareholder value through the acquisition, development, and operation of small-cap companies with significant growth potential. Such companies can benefit from Crown's financial and management expertise. The achievement of Crown's investment objectives may involve initial public offerings, mergers, spinoff transactions or sales to strategic partners. The Company's common stock is traded on Nasdaq under the symbol ''CNGR''.
This press release may include statements that constitute ''forward-looking'' statements, usually containing the words ''believe'', ''estimate'', ''project'', ''expect'' or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, changing economic conditions, interest rate trends, continued acceptance of the Company's products and services in the marketplace, competitive factors, dependence upon third-party vendors, and other risks detailed in the Company's periodic report filings with the Securities and Exchange Commission. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.
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Contact:
Crown Group, Inc., Dallas
Edward R. McMurphy, 972/717-3423
or
R.J. Falkner & Company
R. Jerry Falkner, 800/377-9893
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