Pen Interconnect Signs Letter Of Intent To Purchase Dallas, Texas, Contract Manufacturing Company
IRVINE, Calif.--(BUSINESS WIRE)--Sept. 27, 1999--Pen Interconnect, Inc. (OTC BB: PENC), announced today that it has signed a letter of intent to purchase The Gammon Group, a private contract manufacturing company in Dallas, Texas, and a local affiliate of Gammon.
The Gammon Group, and its affiliate currently manufacture for the electronics and medical industries products such as electronic assemblies, power supplies and cabinets as well as motor generators for the RV and boating industries. They have combined annual revenues in the $10 million range.
``The Dallas-Fort Worth area is expanding rapidly and the need for contract manufacturing is readily evident,' said Stephen J. Fryer, Pen Interconnect President & CEO. ``This acquisition expands Pen Interconnect's directed focus on contract manufacturing and power supply design and manufacturing in a geographic area about which we are enormously bullish.'
Terms of the acquisition, which will be a stock transaction, were not disclosed. ``We will retain the excellent management at the Gammon Group and it will become a wholly owned division of Pen Interconnect,' Fryer said. ``We anticipate closing this transaction before the end of the year.'
Pen Interconnect also announced that its agreement to merge with Transdigital Communications, Brea, CA., a supplier of air transport and general aviation cabin communications and entertainment products, has been terminated. ``We mutually determined after significant due diligence that at this time this merger was not in the best interests of the involved parties,' Fryer said.
Pen Interconnect (OTC BB: PENC) provides the total manufacturing solution for manufacturers, including circuit and board design, mechanical and product design, prototype and volume board assembly, system services and end-user distribution. Headquartered in Irvine, Ca., it also has support manufacturing facilities in Utah and China.
VISIT THE PEN INTERCONNECT WEB SITE at pen-interconnect.com
The statements contained in this news release that are not purely historical are forward-looking statements that may involve risks and uncertainties. The Company's actual results may differ significantly from the results contained in the forward-looking statements. Factors that might cause such differences include, but are not limited to, the effect of losses and other factors on the Company's credit facilities, business and results of operations; the Company's limited capital resources and its ability to fulfill its existing obligations and ongoing capital needs; risks associated with excess or obsolete inventory; the potential impairment of assets; the Company's dependence on key customers and their financial viability; the impact of competition; and the Company's abilities to effectively manage growth. These and other risk factors are discussed in the Company's filing on Forms 8-K, S-3, SB-2, 10-QSB and 10-KSB.
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Contact:
Pen Interconnect, Inc.
Stephen Fryer, 949/798-5881
or
American Financial Communication
Jeff Lamberson, 916/552-6532
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