ThermaCell Acquires Sealco Systems and
T-Coast Pavers for 300,000 Shares of Restricted Common
Stock
First Financial Initiates Analyst Coverage
SARASOTA, Fla., Dec. 18 /PRNewswire/ -- ThermaCell Technologies, Inc. (Nasdaq: VCLL; VCLLW) announced that it completed its acquisition of Sealco Systems, Inc. and T-Coast Pavers, Inc. of Stewart, Florida for 300,000 shares of restricted common stock. With more than $2 million in sales, the acquisitions will be immediately accretive and are expected to generate approximately $200,000 in net profit in fiscal 1999.
John Pidorenko, Chairman, President and CEO of ThermaCell, said that due to recent gains in the price of ThermaCell stock, ThermaCell was able to negotiate an all stock transaction more favorable for shareholders than the $1 million combination of cash and stock that the Company originally announced. The acquisitions will help increase ThermaCell's revenue run rate to more than $9 million in Fiscal 1999, not including further acquisitions or other business
development activities under consideration.
Mr. Pidorenko said, ''The acquisitions provide several strategic advantages. The companies will broaden our product line and brand offerings -- Sealco provides outdoor sealing and weather-proofing services while T-Coast manufactures and installs brick-like pavers used in construction. They will expand the use of our VaxCell™ microsphere enhanced products, enabling ThermaCell to become vertically integrated with greater gross profit margins and a larger market potential. The acquisitions also will help provide free delivery of ThermaCell's online retail paint business, to be launched in the March 1999 quarter.''
The Company also reported that First Financial Investment Securities of Austin, TX initiated coverage on ThermaCell with a Speculative Buy recommendation and that other research firms are conducting due diligence on the Company.
ThermaCell Technologies, Inc. is a vertically integrated manufacturer and marketer of technologically enhanced coatings and building materials that provide greater insulation, protection, strength, longevity and value at a lower cost than conventional materials. VaxCell™ microspheres are uniform, hollow, glass bubbles that look like fine, white sand. In coatings, VaxCells™ create a barrier that is more effective and less expensive for sealing and weather-proofing. In building materials, VaxCells™ create greater product strength and
endurance at a lower weight and cost.
Forward-Looking Statements: This news release contains certain ''forward-looking'' statements within the meaning of the Private Securities Litigation Reform Act of 1995, which provides a new ''safe harbor'' for these types of statements. To the extent statements in this news release involve, without limitation, product development and introduction plans, the Company's expectations for growth, estimates of future revenue, expenses, profit, cash flow, balance sheet items, sell-through or backlog, forecasts of demand or market trends for the Company's product categories and for the industries in which the Company operates, or any other guidance on future periods, these statements are forward-looking statements. The Company assumes no obligation to update forward-looking statements.
SOURCE: ThermaCell Technologies, Inc.
More Quotes and News:Thermacell Technologies Inc (Nasdaq:VCLL - news)
Related News Categories: chemicals, construction |
