NEWS:
Midland, Inc. Acquires New Departure Corporation
DALLAS, Oct. 9 /PRNewswire/ -- Midland, Inc. (Nasdaq:MIDL) announced today it has acquired New Departure
Corporation in a transaction completed today. New Departure is in the Bearing and power transmission business with
locations in Dallas, Texas. New Departure leases capital intensive equipment to Fortune 500 Companies. In addition New
Departure leases Bearing interchange software to distributors in the Bearing industry. The software is the only product which
allows distributors to automatically cross reference bearings from different manufacturers in a single software program.
The new subsidiary will open a facility, during the first quarter of 1998, that will liquidate excess and obsolete inventory from
major bearing distributors throughout the United States. The location of the new facility will be in the Dallas area and will
include approximately 100,000 square feet of warehouse and office space. The Company anticipates it will add sales in excess
of $15,000,000 due to this expansion. The Company will also reopen its West Coast office, in San Diego, to better serve its
customers in that part of the country.
New Departure is the first company to offer an alternative to the high cost of maintaining the more expensive bearings used in
some of the larger capital intensive industries. New Departure leases (high end $15,000 and up) bearings and power
transmission components to Fortune 500 Companies in the manufacturing sector. The Company feels that it can convert a
substantial portion of the $1 billion in sales, currently in this market segment, to short term capital leases.
The copyrighted software provided by the Company is designed to increase inventory turns which can increase profits for
distributors by as much as 20%. The software is unique to this $20 billion per year market. The Company expects to have
sales/licensing fees of $2 to $5 million during FY 1998.
The Company has ended its agreement to purchase the other companies it had been negotiating with. In addition Steven King
resigned as a Director and Chairman of the Board but agreed to stay on as a consultant to the Company.
For additional information contact New Departure at 800-754-4519.
SOURCE Midland, Inc. |
