Wednesday December 3, 1:30 pm Eastern Time
Company Press Release
Berger Holdings Ltd. Announces Acquisition Agreement
PHILADELPHIA--(BUSINESS WIRE)--Dec. 3, 1997--Berger Holdings Ltd.
(NASDAQ-BGRH) announced that it has signed a definitive agreement to
acquire the roof drainage segment of Benjamin Obdyke Inc. for a cost of approximately $12 million.
The purchase price consists of $10 million in cash and the balance in a subordinated note, common stock and warrants. Closing is subject to a number of conditions and is scheduled to take place on or about Jan. 2, 1998.
The business being acquired is expected to have revenue of approximately $20 million for the year ending Dec. 31, 1997. Berger Building Products Corp. also expects to report approximately $20 million of revenue for the same period.
Benjamin Obdyke Inc. is a private company founded in 1868 and will
remain in business as a distributor of its ventilation systems and other non-competitive building products.
Joseph Weiderman, president & C.O.O. of Berger Building Products Corp., stated, ''Our two companies have been competitors in our market area for over 120 years. I am confident that the increased efficiencies and economies of scale of the combined businesses will enable us to better serve our expanding national customer base and to create greater value for our shareholders.
''This acquisition also represents a major step in our long-term goal of consolidating the fragmented roof drainage products industry.''
Berger Holdings Ltd. is the parent company of Berger Building Products
Corp. founded in 1874 and is a manufacturer of roof drainage products
and a complete line of residential and commercial snow guards used in
the new construction, remodeling and renovation markets.
Matters discussed in this news release contain forward-looking
statements. The company notes that a variety of factors could cause the company's actual results and experiences to differ materially from the anticipated results or other expectations in the company's
forward-looking statements.
Additional information on factors that may affect the operation,
performance, development and results of the company's business are
discussed in filings of the company with the Securities and Exchange
Commission.
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Contact:
Berger Holdings Ltd.
Theodore A. Schwartz, C.E.O., 215/355-1200, ext. 123
or
Financial Broker Relations Ltd.
Michael Fearnow, 713/840-7500 |
