U.S.A. Floral Products and Florimex Combine To Become World's Largest
Floral Supplier
PR Newswire - August 13, 1998 06:16
Company Has Combined Pro Forma Revenues of Approximately $1 Billion
Transaction Broadens U.S.A. Floral's Global Footprint and Reinforces
Position as the Premier Floral Products Distribution Organization
WASHINGTON, Aug. 13 /PRNewswire/ -- U.S.A. Floral Products, Inc.
(Nasdaq: ROSI) today announced it has entered into a definitive
agreement to acquire the business of Florimex Worldwide, the largest
international floral importer and distributor of fresh-cut flowers in
the world with fiscal 1998 gross revenues of approximately $400 million.
This transaction creates a company with an annualized revenue run rate
of nearly $1 billion. Upon completion of the transaction, the Company
will be the largest integrated distributor of floral products in the
world. U.S.A. Floral will pay approximately $90 million in cash,
including the assumption of debt, for Florimex.
Florimex, which comprises a number of subsidiaries of DIMON,
Incorporated, (NYSE: DMN), is based in Danville, Virginia and Nuremberg,
Germany and operates in 60 offices throughout 19 countries worldwide,
including the U.S., Austria, Canada, France, Germany, Italy, Japan, the
Netherlands, Spain, Sweden, Switzerland, the United Kingdom, Australia
and South Africa. Coupled with U.S.A. Floral Products' 62 locations in
25 states and three provinces of Canada, the combined entity will
provide the only integrated, worldwide sourcing and distribution of
fresh floral products. Like U.S.A. Floral, Florimex is primarily
involved in sourcing and purchasing flowers for resale to wholesalers,
bouquet companies and retailers. Florimex's floral export operation is
located in Aalsmeer, the Netherlands, and represents the second largest
exporter of fresh flowers in Europe. Florimex is also increasing its
focus on bouquet-making and similar value-added products intended for
direct sale to supermarkets, the fastest growing segment of the global
flower industry.
Robert Poirier, Chairman and Chief Executive Officer of U.S.A. Floral
Products said, "We are extremely excited about the pending combination
of these two floral products leaders. Florimex is a first-class
organization with a long tradition of high quality service in the
distribution of floral products to customers in Europe, Asia and North
America. This is by far the largest and most strategic acquisition
agreed to by U.S.A. Floral Products. U.S.A. Floral and Florimex together
make a powerful combination of talent that will build on the already
strong relationships with growers around the world and allows us to
leverage marketing and organic growth opportunities created by our
unparalleled international distribution network."
Mr. Poirier continued, "When we formed U.S.A. Floral Products nearly ten
months ago, it was with the vision of creating a truly world-class
company. Our goal was to deliver the highest quality products quickly
and efficiently to our customers, wherever located. Since our formation,
we have worked diligently to build a company with truly national reach.
In the Florimex transaction, we see the opportunity to extend our
consolidation and integration model for the floral products industry
beyond our North American base and onto a global stage. Both
domestically and internationally, our focus will remain upon the
profitable integration of the companies within our network, building an
efficient infrastructure, paring costs where possible, and seeking
revenue synergies across our customer base that can fuel organic
growth."
Claude Owen, Chairman of DIMON stated, "The combination of Florimex with
U.S.A. Floral Products is a perfect, strategic fit. This transaction
will enhance the strength of the combined company as a global player in
the floral products business, which is good news for Florimex's
customers and employees worldwide."
Upon closing, Dwight Ferguson, the current Chief Operating Officer of
Florimex, will assume the role of Vice Chairman of U.S.A. Floral with a
primary focus on integration and organic growth for European operations.
Ferguson stated, "We are thrilled to join forces with U.S.A. Floral
Products and our worldwide management team is looking forward to working
with the management team of U.S.A. Floral. Bob Poirier and I share a
vision of creating a single, unified company that maintains a truly
unique leadership position in the worldwide integrated distribution of
fresh floral products."
"The purchase of Florimex is a bold step forward for the Company. We see
tremendous opportunities to enhance financial performance by bringing
the collective wisdom and experience of these two companies together,"
Mr. Poirier stated.
U.S.A. Floral Products will finance this transaction through borrowings
under its credit facility. The transaction is expected to be accretive
to earnings and is scheduled to close on or after September 30, 1998. |
