American CinemaStores To Acquire The Digital Group
COMMERCE, Calif.--(BUSINESS WIRE)--Sept. 2, 1997--AMERICAN
CINEMASTORES, INC.(NASDAQ:ACSI),in a further expansion in the apparel
trades, announced today that it had signed a Letter of Intent to acquire
The Digital Group, a privately-owned company with patents pending
on a system of digital print technology for fabrics, and will form a new
ACSI subsidiary called Digital Group. Digital Group's three founders,
William Grier, Walter Wilhelm and Roger Wilson, will receive up to 600,000
shares of common stock based on earnings contributions for ACSI, and
will remain with the company.
William Grier, President of the new Digital Group subsidiary, is a former senior
executive of Cactus, Inc., and in his 20 years of product development application
experience in the print industry helped pioneer successful sublimation printing
for apparel and has been involved with many direct print-on-demand technologies.
Walter Wilhelm, who will direct sales and marketing for The Digital Group, is the
former founder of Microdynamics, a pioneer in Quick Response technology, and is
a partner in Wilhelm-Leslie Associates, a firm specializing in bringing leading
edge technology to the sewn goods industry. Roger Wilson, Executive Vice
President of The Digital Group, a prominent apparel industry spokesman for the
"Agile Manufacturing Concept," was most recently Chairman of the Board and
Chief Executive Officer of Bula, Inc., the Durango, CO. apparel manufacturer
which has been the beta site for testing and implementing the Digital Group
technology.
The advantages of digital printing for apparel in fabric manufacturers is that
high resolution printing produces durable, color fast apparel; designers can
select colors from the widest color spectrum in the industry; the low stress
printing process provides a greater range of fabrics and preserves the material's
original drape, feel and stretch;direct digital set-up allows change-on-the-fly
printing so clients can produce product as needed.
"The Digital Group process resolves many problems endemic in the fashion world,"
said Kathryn Van Ness, president and chief executive officer of ACSI, "and should
help reduce the $32 billion tied up or lost in returned piece goods each year in
the U.S. market alone." The Digital Group technology enables manufacturers to
inventory rolls of white fabric, and print as many or as few yards on demand in
different patterns and colors,using a proprietary system involving a computer/design
system, unique inks, paper and heat transfer for equipment.
Digital Group is in the process of installing its system and equipment in three
apparel manufacturing plants, one of which is ACSI's wholly-owned subsidiary
Susan Burrowes Ltd. Digital Group has also signed a Letter of Intent to acquire
three-and-a-half year old Cactus-Europe, a Paris-based pioneer in the development
of fashion printing on fabric as well as formica, glass and furniture. Sales of
Cactus-Europe in 1997 were $1.4 million.
William Grier, The Digital Group president, said that "Longer range plans call
for digital application service centers in every major trade region within four
years. Simultaneously, Digital Group will begin working with major manufacturers
to operate dedicated production centers for companies interested in being ahead
of the curve of consumer demand for apparel products."
Cactus-Europe recently signed a five-year agreement with Paris-based SEHM (Salon
International Del'Habillement Masculin), the organization responsible for the
menswear portion of the Ready To Wear show with offices in 39 countries. SEHM,
in conjunction with Digital Group France, will sponsor young apparel designers
working with digital printing applications. The SEHM also will sponsor the
demonstration of Digital Group production at apparel shows worldwide.
ACSI, formerly an operator of merchandise boutiques at movie theater locations,
terminated that business in 1996. ACSI now operates two subsidiaries, Sierra
Fixture & Design, Inc. and Just Jackets, Inc. and with its recent acquisition
of Susan Burrowes, Ltd., has embarked upon a program of strategic apparel and
other related acquisitions, with a focus on companies whose revenues and
profits can be enhanced not only by astute merchandising but also can benefit
from the acquisition of The Digital Group.
CONTACT:
ACSI Investor Relations, 800-922-3456
or
Institutional Investors:
The Wall Street Group, Inc.
212-888-4848
or
Company Contact:
Kathryn Van Ness, President
Christopher Ebert, CFO
213/725-4955
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