Berger Holdings, Ltd. Completes the Acquisition of Sheet Metal Manufacturing Co., Inc
PHILADELPHIA--(BUSINESS WIRE)--Dec. 8, 1998--Berger Holdings, Ltd. (NASDAQ: "BGRH") announced that it has purchased the assets (exclusive of real estate) of Sheet Metal Manufacturing Co., Inc. of Ridgewood, New York and Waterbury, Connecticut. The acquisition closed on December 7, 1998.
The purchase price of $5.1 million was paid through a combination of bank and seller financing. No additional equity was issued.
The Sheet Metal operation is expected to have revenue of approximately $11 million in the year ending December 31, 1998. Berger is expecting revenue for 1998 of approximately $35 million, which is up from $20.7 million in 1997. Berger expects cash generated from operations (EBITDA) to be approximately $4.2 million in 1998 vs. $2.4 million in 1997.
Mr. Theodore A. Schwartz, Chairman, CEO, stated, "As previously reported, after acquiring the roof drainage business from Benjamin Obdyke in January of this year, we proceeded to build our infrastructure to accommodate a significantly larger revenue base. We have increased our manufacturing, administrative, warehousing, and distribution space from 105,000 square feet to over 250,000 square feet."
He further stated, "We believe that this acquisition of Sheet Metal represents an initial step toward accretively utilizing this added capacity, and should have a positive impact on our operating results as early as the first quarter of 1999. We intend to continue our efforts to expand our market presence both regionally and nationally." |
