HOW ABOUT THIS ONE?
Friday August 22 12:39 PM EDT
Company Press Release
Saratoga Brands Subsidiary Purchases USDA-Certified Plant Expected
to Increase Its Revenues by More Than 15 Percent
LAKEWOOD, N.J.--(BUSINESS WIRE)--Aug. 22, 1997--Saratoga Brands Inc. (Nasdaq:STGA) Friday announced that
its Deli King subsidiary has completed the purchase of a U.S. Department of Agriculture- certified plant in Johnston, R.I., just
10 minutes from its current operation.
With the purchase, Deli King acquired all trademarks and related licenses of Conti's Gourmet Sausage.
``The purchase was completely funded through operating cash flows and does not involve the issuance of any new shares,''
stated Scott Halperin, Saratoga's chairman and chief executive officer. ``This purchase is another step toward continuing
Saratoga's efforts to increase its shareholder value, while maintaining its focus on the food industry,'' he added.
The company's new USDA-certified plant will produce meat products and ``ready'' meals for Deli King's mobile catering and
wholesale business. It is anticipated that the addition of these products will enhance Deli King's revenues by 15 percent to 20
percent to current customers.
``We expect our customer base to increase significantly with our ability to offer new USDA-certified meat products,'' said Ron
Gagnon, Deli King's president. ``Combining the increased sales to current customers with potential new customers should
increase our revenues by over a million dollars,'' he added.
In addition to the dramatic effect this purchase will have on Deli King's current operation, Saratoga plans to exploit its newly
purchased trademarks by beginning to market Conti's Gourmet Sausage products through both Deli King's wholesale operation
and Cucina Classica Italiana's distribution channels.
Saratoga Brands' Mobile Caterers Inc. subsidiary is a food processor and distributor. It services mobile caterers and provides
social catering services as well as food distribution to more than 900 convenience stores and retail outlets in the southern New
England states.
Saratoga Brands' Cucina Classica Italiana subsidiary imports and produces under license Italian specialty cheeses and other
premium specialty foods, including the world-renowned brands from Egidio Galbani S.p.A. |
