News - Gordon Deal Closes
Chromatics Color Sciences International Completes Acquisition of Gordon Laboratories
Gordon CEO Brian Fitzpatrick Becomes President & COO of Chromatics
NEW YORK, June 6 /PRNewswire/ -- Chromatics Color Sciences International, Inc. (Nasdaq: CCSI) announced today that it has completed the acquisition of Gordon Laboratories, Inc., a Carson City, Calif.-based formulator and manufacturer of cosmetics, hair care and other personal care products. The Company has acquired approximately an 85% equity interest in Gordon for approximately $5.5 million in cash and stock and will acquire the remaining interest within one year.
Brian Fitzpatrick, the former Chairman, President and CEO of Gordon, has been named President & Chief Operating Officer of CCSI and will relocate to the Company's New York headquarters. Mr. Fitzpatrick has been the Chairman, President & CEO of Gordon since April 1996 and, prior to this, he served as president of several electronic manufacturing companies after working for the Polaroid Corporation in its industrial marketing division. He graduated with an MBA degree in Finance & Marketing from Adelphi University in 1986 and received a BS degree in Marketing from Seton Hall University in 1975.
The Company's Chief Executive Officer, Darby Macfarlane, commented, "We believe this acquisition is a very good strategic move for us for several reasons. First and foremost, Brian Fitzpatrick is an outstanding executive with whom I've worked for several years. We are very fortunate to acquire his skills. Along with Brian, the acquisition provides us with an experienced management team fully operational in the cosmetics and beauty care industry, as we move to establish our presence there."
She said, "This transaction diversifies and significantly enhances our revenue stream immediately, and positions us well for long-term growth."
Mrs. Macfarlane indicated that Gordon will provide CCSI with needed infrastructure to commercialize its color science technology in the cosmetics and hair colorant markets. The two companies already had entered into a licensing agreement to commercialize the marketing of the Company's new, hand-held Colormate(R) device and system for selecting personalized colors of cosmetics, hair color and beauty related products, including custom-blended cosmetic foundations. The Company expects to capitalize on Gordon's manufacturing and marketing capabilities to generate expanded revenues from laboratory product chromaticity studies, color-measuring systems and related products.
Gordon also has the capability to produce TLc-Lensette(R) calibration standards for the Company's medical device, the Colormate(R) TLc-BiliTest(R) non-invasive monitoring system for infant jaundice. Ms. Macfarlane said she expects Gordon to be qualified for the production of calibration standards by the end of the year.
Gordon is recognized within the personal and beauty care industry as a high-quality formulator, packager and contract manufacturer of a variety of cosmetics and other beauty care products for branded consumer product marketers and private label retailers. The Company's customer base consists of leading brand marketers, major mass merchandisers and direct-sale marketers, including such leading names as Sears, The Gap, Kmart, Tova, ~erber, Herbalife, The Body Shop, Bath & Body Works and Victoria's Secret. Gordon anticipates revenues of approximately $7 million for its fiscal year ending May 31, 2000 -- a volume level it expects to increase significantly, having recently expanded its production capacity by moving into a custom-designed, state-of-the-art 60,000 sq. ft laboratory and manufacturing facility in Carson City.
Chromatics Color Sciences International is in the business of color science.... |
