Acquisition News - Tuesday March 25 12:50 PM EDT
Video Update signs letter of intent to acquire 27-store video chain in British Columbia
ST. PAUL, Minn.--(BUSINESS WIRE)--March 25, 1997--Video Update, Inc. (Nasdaq National Market: VUPDA,VUPDZ), an international video chain, today announced that it signed a letter of intent to acquire the assets of Superior Video, a 27-store video rental chain from Hill-Cassidy Retail Corp. based in British Columbia, Canada. Final closing of the acquisition is subject to Canadian regulatory approval, Video Update Board and lender approval, due diligence and signing of a definitive agreement. Further terms of the agreement were not disclosed.
Dan Potter, Chairman and Chief Executive Officer of Video Update, commented, "Our existing presence and successful operating track record in Canada supports our decision to continue our acquisition strategy in this region. The addition of these 27 stores, coupled with the 23 stores we acquired in Alberta in February, will bring our total company-owned store count to 331, including 123 in Canada. Once Superior's stores are integrated into our existing store base, we expect to further enhance their operations through improved management systems and cost efficiencies that will result from their being part of Video Update's North American retail network."
Video Update, Inc. is an international video retail chain with 333 video superstores in North America of which 304 are company-owned and 29 are franchised as of March 25, 1997. These stores are located in nineteen states in the US and in three provinces in Canada.
Matters discussed in this news release contain forward-looking statements that involve risks and uncertainties. The Company's results may differ significantly from the results indicated by such forward-looking statements. No assurances can be given that the above described acquisition will be completed, or the required Canadian regulatory approval will be granted, on a timely basis, if at all. These and similar acquisition related risks are detailed from time to time in the Company's SEC reports, including Form 10-KSB, S-3 and 10-QSB for the quarter ended January 31, 1997.
CONTACT: MWW/STRATEGIC COMMUNICATIONS, INC.
Public Relations - Tel. (201) 507-9500
Contact: Carolyn Bancone - cbancone@mww.com
Rob Swadosh - rswadosh@mww.com
Web Page - videoupdate.com |
