Beacon Light Announces Completed Acquisition; BLHG Combines Global Marketing with Asian Manufacturing
( Business Wire )
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( BW)(NJ-BEACON-LIGHT)(BLHG) Beacon Light Announces Completed
Acquisition; BLHG Combines Global Marketing with Asian Manufacturing
Business Editors
JERSEY CITY, N.J.--(BUSINESS WIRE)--May 26, 1999--Jerry
Gruenbaum, President of Beacon Light Holding Corporation (OTC-BB:
BLHG) announced today that the Company has completed the acquisition
of Wellux Industries Limited, Hong Kong, (Wellux), a firm that
designs, manufactures and markets high-end specialty plastic products
for the following consumer product sectors: Housewares, Kitchenware,
the Adult Leisure market and the Do-It-Yourself market.
Gruenbaum was pleased to add, "This acquisition was consummated
without incurring any debt. BLHG was able to negotiate this purchase
on the value of its common stock. With its acquisition of Wellux, BLHG
now owns and operates a manufacturing, distribution and marketing
company that will have minimum gross revenues for this fiscal year of
more than five million dollars (USD) with management projections
estimating gross revenues at ten million dollars (USD). BLHG has added
Wellux to its corporate portfolio for four million shares of
restricted common stock."
The global market for these types of products is sizable. Wellux
focuses its marketing efforts on Europe, North America and Japan
serving a client base of wholesalers and distributors to the retail
sector, direct sales organizations, large retail chains and Internet
sales organizations.
In Europe, Wellux products are sold and distributed by Wellux
Netherlands B.V., a wholly-owned subsidiary of Wellux, consisting of a
warehouse and physical distribution center, a showroom and offices
located in Den Bosch, which is in the southern portion of the
Netherlands. From this geographically well positioned center, the
marketing, sales and distribution activities for the European market
is conducted. In the Benelux countries and Germany, Wellux B.V. sells
direct to retail, by means of their own sales force. In the other
European countries, marketing agents are appointed, coordinated and
supplied by Wellux B.V. Wellux plans a similar distribution center and
marketing effort to be implemented in the US market within this fiscal
year.
STRATEGY
The management of BLHG and Wellux have developed a strategy that
primarily focused on increasing market share and profitability in
Europe, developing the US market and, to a lesser extent, the slowly
growing Asia market. This strategy is based on the development of new
attractive retail value enhancing packaging; introduction of new
quality products with added features; very competitive pricing;
effective customer service through broader availability of individual
items through a larger inventory stocking a wide product assortment in
centrally located distribution hubs in Europe and USA; and Globally
increasing mail order volume.
MANUFACTURING AND DESIGN
Wellux HKG Ltd., has its own in-house graphic and product
designers creating new products and packaging thus shortening the
Company's response time of meeting market needs, increasing
flexibility in updating products and web sites. All of which has the
net effect of increasing margins by lowering costs.
Wellux owns and operates a factory for high-end products, making
use of rotation and dipping technology which is situated near its
office and showroom in Kowloon Bay HKG. This enables Wellux to
produce, at a much lower cost, products with features, that up to now
have only available from US and European manufacturers. Wellux Ltd,
will manufacture more and more of its own products, thereby improving
gross margin and its positioning as a competitive supplier. Wellux's
main factory is located in the Shen Zhen province of China. This
factory conducts Wellux's injection molding and assembly for the core
products of the Wellux product line.
The high quality plastic consumers' goods division has developed
as one of the planned business units of Beacon Light Holding Corp.,
allowing BLHG to become a main player in the manufacturing and
marketing of a wide range of plastic consumer goods.
Safe Harbor Disclosure
This Press Release contains or incorporates by reference
"forward-looking statements," including certain information with
respect to plans and strategies of Beacon Light Holding Corporation.
For this purpose, any statements contained herein or incorporated
herein by reference that are not statements of historical facts may be
deemed to be forward-looking statements. Without limiting the
forgoing, the words "believes," "anticipates," "plans," "expects,"
"enhanced" and similar expressions are intended to identify
forward-looking statements. There are a number of important factors
that could cause actual events or actual results of Beacon to differ
materially from these indicated by such forward-looking statements.
For further information about Beacon Light, please contact Jerry
Gruenbaum at 201/876-5077
--30--ah/ny*
CONTACT: Beacon Light Holding Corporation, Jersey City
Jerry Gruenbaum, President
E-mail: blhcorp@aol.com
201/876-5077
KEYWORD: NEW JERSEY INTERNATIONAL EUROPE ASIA PACIFIC
INDUSTRY KEYWORD: FOREST PRODUCTS RETAIL MERGERS/ACQ
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