I found this on the Business Wire News Release:
BW0318 MAY 29,1996 0:06 PACIFIC 03:06 EASTERN
( BW)(NEMDACO)(NMDO) Nemdaco, Inc. Agrees to Acquire The Hat Club,
LLC, Arizona
Business Editors
LOS ANGELES--(BUSINESS WIRE)--May 28, 1996--Nemdaco, Inc.
(NASDAQ OTC: NMDO) today announced that it has entered into an
agreement to acquire all assets of The Hat Club, LLC, Arizona, a
privately-held Arizona corporation. The acquisition will be the
first transaction of the newly-created Nemdaco, Inc. subsidiary.
Nemdaco Retail Sales, Inc. The terms of the acquisition call for
Nemdaco, Inc. to retain 70% of the subsidiary in exchange for
providing the necessary financing to expand The Hat Club's
operations from 8 to 150 retail locations over the next 18 months.
The transaction is expected to close on July 1, 1996.
The Hat Club, LLC, a licensed specialty sport apparel retail
chain, was formed in 1992 by NBA legend Danny Ainge. Mr. Ainge is
currently the chairman of the Company, and will continue in that
capacity for Nemdaco, Inc. The Company profitably operates retail
stores in Arizona and Montana, and has current annual revenues of
approximately $3,250,000. The Hat Club currently boasts over 60,000
members, and has developed a highly successful and exclusive
membership program which provides regular newsletters, special
promotional and informational material and product discounts to its
members.
"This acquisition is a logical step in Nemdaco's expansion of
licensed sport products. The Hat Club provides Nemdaco with a
viable retail and catalog sales distribution arm, which directly
complements the television direct marketing activities for licensed
sport products of Nemdaco Global One Media, Inc.," said Mr. Gary
Larkin, President of Nemdaco, Inc. "We expect that the natural
synergy between The Hat Club and Global One should positively effect
the growth of both companies, as well as increasing buying power and
consolidating operational overheads," Larkin continued.
As a result of the acquisition, Mr. Terry Lambert, President of The
Hat Club, says the Company is now positioning itself for rapid
expansion over the next 18 months. "We have spent the last three
years developing and refining a unique retail and club membership
operation which can be easily replicated in all major North American
markets. Nemdaco's financial support, together with the marketing,
distribution and purchasing power of Global One, will greatly assist
The Hat Club in achieving its initial goal of 150 retail stores and
1 million plus club members."
Lambert went on to say, "In meeting these goals, we expect to
generate a substantial revenue stream for both The Hat Club and
Nemdaco Retail Sales, Inc."
Mr. Walt Borchers, President of Nemdaco Global One Media, explained
the benefits of the acquisition in view of the growth in the sports
collectible and memorabilia industry. "The retail and catalog
direct sales resources of The Hat Club, combined with Global One's
current merchandising operation, establishes Nemdaco as a powerful
distribution force in the sports marketing industry."
Nemdaco, Inc. further announced today that it is no longer
seeking to acquire C.B. Fox, Inc., the Denver-based contract
electronic manufacturer, because of difficulties in satisfactorily
concluding all due diligence issues.
Nemdaco, Inc. is an aggressive acquisitions company committed to
acquiring profitable on-going businesses which operate in high-yield
and high-growth markets. Nemdaco then develops, packages and
spins-off its acquisitions into separate, independently traded public
entities. For more information, please call Stanley Schulman,
Nemdaco, Inc. Corporate Relations at 818/884-5969.
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CONTACT: Nemdaco, Inc.
Gary Larkin, 310/553-7755
Stan Schulman, 818/884-5969
or
The Hat Club
Terry Lambert, 602/829-0545
or
Nemdaco Global One Media, Inc.
Walt Borchers, 310/788-5798
KEYWORD: CALIFORNIA ARIZONA MONTANA
INDUSTRY KEYWORD: RETAIL APPAREL/TEXTILES MERGERS/ACQ
REPEATS: New York 212-752-9600 or 800-221-2462; Boston 617-236-4266 or
800-225-2030; SF 415-986-4422 or 800-227-0845; LA 310-820-9473
BW URL: businesswire.com |
