Acquisitions announced in July will fuel growth and earnings, and speed NASD filing, I hope. They announced three in July, and probably be followed by more. Seems like they're in the process of assemblng building blocks for the future, but I sure wish we saw a little more volume. Looking for some news in the near future.
Here's the July announcement -- (by the way, I've had some of their wine and its pretty good!)
Wednesday July 23 9:09 AM EDT
Company Press Release
Araldica continues expansion with acquisition of three
companies
NEW ROCHELLE, N.Y.--(BUSINESS WIRE)--July 23, 1997--Araldica Wineries, Ltd.
(NASD-BB: AWLT) announced today that it has completed the acquisition of three companies, as
part of its strategic growth program for 1997.
Araldica's President, Frank J. Landi, Sr., stated that ``Araldica is successfully moving from a
specialty wine and food importer to a broader distribution and marketing company. Our recently
announced intention to acquire the first of a series of smaller, heritage-themed hotels, and the
acquisition of the three companies being announced today, already represent a tenfold growth in our
profit potential, based on the current earnings of these new subsidiaries. In fact, we expect these
profit centers to do far better with the synergy that Araldica's distribution and marketing systems will
provide.''
The acquisitions announced today will each continue to operate as wholly-owned subsidiaries of
Araldica. They are:
- All-Brands Discount Wines & Liquors, Staten Island, N.Y.
- This 20 year old, profitable wine retailer has sales of $750,000 annually. Araldica will use this
facility for the retail introduction of its custom-labelled premium Italian wines. The company believes
that it will double All-Brands existing revenues in its first year of operation as an Araldica subsidiary.
This is the first of a series of planned acquisitions that will provide Araldica with broader retail
market access.
- Super City Gourmet, Deer Park, N.Y.
This profitable, specialty foods distributor, which has sales of $400,000 annually, will handle all of
Araldica's specialty foods sales and distribution. The product line includes premium Italian olive oils
and vinegars (infused and plain), pastas, sauces and other items. The company believes that it will
double the existing revenues of Super City in its first year of operation as an Araldica subsidiary.
- Club Dieta Mediterranea, S.r.l., Avezzano (Pescara), Italy.
This distributor of unique specialty foods emphasizes products that are grown naturally, and
manufactured with little or no additives, chemicals and/or preservatives. Araldica plans to capitalize
on its patents, trademarks and copyrights in over 30 countries, its substantial marketing and
international customer network, and its Italian business connections and product sources. These are
expected to lead to revenues of $500,000 to $750,000 in its first year as a subsidiary under the
Araldica umbrella.
Louis DeSantis, Vice President of Araldica, stated, ``These acquisitions add combined, profitable
operations totalling $1,300,000 in existing revenues, and projected profitable revenues of
$2,500,000 and $3,000,000 in the coming year.''
Last week, Araldica announced the signing of a letter of intent to acquire the Willcox Inn of Aiken,
SC, which has existing annual-revenues of $1,000,000 and net earnings of $150,000. This
acquisition would be the first of several planned small hotel acquisitions whose existing revenues and
sales opportunities for specialty wine and food are expected to increase Araldica's future profits.
Landi, commented, ``We are now on target with our staged growth plan, which emphasizes growth
through targeted acquisition of companies that are profitable and have dynamic impact on existing
Araldica companies' profits. Each new subsidiary brings growth to Araldica in its own right, plus
added markets for our existing product line of premium wines and specialty foods.''
He added that several other acquisitions are imminent, noting that the company's goal for 1997 is to
have over $5,000,000 in revenues, with further growth anticipated, based on the foundation being
laid at the present time.
A public company since 1996, Araldica has been involved in the sale and distribution of premium
Italian wines and specialty foods since 1993. Araldica's sales activities encompass both conventional
(3-tier; importer, distributor, retailer) distribution, as well as direct response marketing (home
shopping programs, internet home pages, infomercials, space advertising and direct mail
promotions).
The company's main product line is its proprietary ``Knights of Italy'' custom-labeled wine series,
containing full-color labels, which reproduce the coat-of-arms associated with the buyers' names, as
well as a family history narrative, indicating the origins of the family and the name.
Contact:
Louis DeSantis
Frank Landi
914/636-0500 |
