Tuesday December 28, 3:21 pm Eastern Time
Company Press Release
AmeriResource Announces Acquisition of Krapfcandoit, Co.
OVERLAND PARK, Kan. and WILMINGTON, Del.--(BUSINESS WIRE)--Dec. 28, 1999--AmeriResource Technologies, Inc. (OTCBB: ARET - news), and Krapfcandoit, Co. jointly announced today that AmeriResource Technologies, Inc., has signed a definitive agreement to merge Krapfcandoit, Inc. (Krapf) and all related subsidiaries into ARET, subject to final due diligence by the companies. The terms of the transaction will be announced once all parties complete the due diligence period. The acquisition is expected to be completed on or before January 23, 2000.
Upon completion of the merger, Krapf (www.krapf.com) will operate as a wholly owned subsidiary of the parent company, AmeriResource Technologies, Inc.
Delmar A. Janovec, Chairman and CEO of AmeriResource Technologies, Inc., James P. Krapf Sr., Chairman of Krapfcandoit, and Michael S. Bertino, President of Krapfcandoit, Co., together made the announcement. J. Dello & Associates, Ltd., located in Hoffman Estates, Illinois, acted as the investment banker on the merger transaction.
Delmar A. Janovec, Chairman and CEO of AmeriResource Technologies, Inc. stated, ``This acquisition adds a dimension to our Company that allows us to be the national leader in developing both limited service residential style assisted care living facilities (ACLF) and full service continuing care retirement community (CCRC) projects. The merger of Krapf, who has been in business since 1916, adds over $31,000,000 in assets to our balance sheet and restores our bonding capacity. The Krapf acquisition brings a $200,000,000 bond capacity to our Company. This bond capacity will allow our Native American subsidiary, Tomahawk Construction Company, Inc., to aggressively return to the national marketplace as a major national general contractor.'
Regarding Krapfcandoit, Co. and Mr. Bertino, President of Krapfcandoit, Co., Mr. Janovec stated, ``Krapf is a national general contractor who has an excellent reputation east of the Mississippi River. Presently Krapf has projects in progress of $117,570,000, which includes everything from building high-rise student housing projects for various universities to CCRC projects. Mr. Bertino brings to our Company years of experience in everything from casinos, residential high-rises to a variety of commercial structures. His leadership is clearly a critical element of our long range growth plan.
Krapf has built everything from power plants to residential housing projects. However, the main focus of Krapf over the past 20 years has been designing, building, and owning on a joint venture basis, over 20 continuing care retirement communities. Krapf is one of the largest national general contractors presently specializing in developing and building continuing care retirement communities (CCRC's).
By combining the syndicated construction financing capacity of the investment banking firm of J. Dello & Associates, with both Crestwood and Krapfcandoit, our Company now has a huge competitive advantage over other competitors. The resources our Company now has available will assure our shareholders of a bright future and an aggressive growth and acquisition plan.``
Besides the $117,570,000 of actual construction projects in progress for which Krapf is the general contractor, Krapf has committed to develop and build over $208,000,000 in senior CCRC housing development projects over the next 3 years.
Additionally, Krapf has bids outstanding for $342,000,000 in projects for the next 3 years.
Mike Bertino, President of Krapfcandoit, Co. stated, ``This merger is a very exciting step for this Company. It allows our company to become a major participant in all aspects of the senior living services delivery system on a national basis. This merger will allow Tomahawk to aggressively pursue a variety of large projects that were unavailable to us without Krapf's bonding capacity.'
Mr. Janovec, Chairman and CEO of AmeriResource Technologies, Inc. stated, ``I have stated all along that our goal was to restore our bonding capacity, revitalize Tomahawk as a major national minority general contractor, and to find the best acquisitions possible for our shareholders. I think we are well on our way to fulfilling that goal. We will continue to look for outstanding growth and merger opportunities during the first and second quarter of 2000 to complete our vertical integration business plan. The acquisition of Krapf has enabled the Company to obtain the necessary bonding capacity to bid and be awarded major regional and national construction projects, on an immediate basis, across the United States. Additionally we have added significant equity and assets to our Company's real estate portfolio, including ownership in numerous CCRC's and commercial real estate projects.'
The acquisitions, which are expected to be the first in a series of strategic moves by the Company, will enhance the management team with personnel of proven experience and allow the Company to assume a new direction.
Statements in this press release, including ``forward-looking statements' that include risk and uncertainties. The forward-looking statements in this press release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially due to a variety of factors, including without limitation the Company's ability to produce and market certain products and/or services and other risks detailed from time to time in the Company's reports filed with the Securities and Exchange Commission.
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Contact:
AmeriResource Technologies, Inc.
Delmar E. Janovec, 913/341-2738
Fax: 413/487-3140 |
