Thursday December 16, 10:54 am Eastern Time
Company Press Release
Peabodys Coffee Signs Letter of Intent To Acquire Arrosto Coffee
ROCKLIN, Calif.--(BUSINESS WIRE)--Dec. 16, 1999--Peabodys Coffee Inc., (OTCBB:PBDY - news) announced today it has signed a Letter of Intent to acquire 100% of the assets of Arrosto Coffee, previously the branded coffee chain concept developed and launched by KOO KOO ROO, currently listed as Prandium, Inc. (OTCBB:PDIM - news).
The Van Nuys, California roasting facility is part of the assets being acquired in this transaction, along with a 1300sq foot flagship retail location on Sunset Boulevard in L.A. In addition to the Sunset Boulevard store, another sixteen (16) Arrosto retail locations are currently operating under license agreements. All these assets will be added to Peabodys' existing 28 specialty coffee units.
Todd Tkachuk, previously President of Peabodys, who will be Chairman of the Board and CEO of the expanded company commented: ``This gives three powerful messages to those interested or involved in the coffee world. First, we believe we are now firmly in the starting line-up in the fast growing specialty coffee industry. Second - This company continues to gather momentum every day. Third - and maybe most importantly - we have the Board and management team in place to keep this momentum going.'
Joe Konis, previously President of Arrosto, who will join the company as Director and CFO, commented: ``There are wonderful synergies from combining the two companies that will add real shareholder value from the outset. We will bank substantive savings on product costs and overheads immediately. In addition, our combined strength will add impact to everything else we do - from our presence in the market to our web site awareness.'
Former Burger King Chairman/CEO Barry Gibbons and Roman Kujath, previously Directors of Peabodys, will continue on the Board of the expanded company.
Mark Lane of Elliott, Lane & Associates, the acquisition intermediary, commented: ``this is a very compatible union. The Newco management team has a wealth of talent and are exuding real energy and enthusiasm for developing their business not only domestically but on an International basis and is therefore justified in their intent to become dual listed on the German OTC Tradegate trading system.
Peabodys Coffee is a specialty retailer operating twenty-eight coffee kiosks throughout California and the Reno / Lake Tahoe region of Nevada. Peabodys markets its own brand of gourmet coffee beans and beverages through these strategically located, portable kiosks at colleges, universities, office buildings, hospitals and entertainment venues.
This release contains forward-looking statements. These statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated in the forward-looking statements. Readers should not place undue reliance on forward-looking statements, which reflect management's view only as of the date hereof. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances.
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Contact:
Peabodys Coffee, Inc., Rocklin
Todd Tkachuk, 916/632-6090 |
