NEWS
Newriders Inc. Solidifies Deal With Paisano
Publications, Hires Investment Banker To Assist
in Financing
Business Wire - January 15, 1998 06:16
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%RESTAURANTS %MANAGEMENT %CHANGES %MERGERS %ACQ V%BW
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NEWPORT BEACH, Calif.--(BUSINESS WIRE)--Jan. 15, 1998--Newriders, Inc.,
operator of two Easyriders Cafes, has signed a binding letter of intent to acquire
privately held Paisano Publications, Inc. and subsidiaries, based in Agoura, Calif.,
for a combination of stock and cash. Paisano is the publisher of Easyriders
Magazine and several other motorcycle lifestyle magazines, and is the franchisor
for motorcycle shops, apparel stores and cafes using the Easyriders name.
Newriders, Inc. will change its name to Easyriders, Inc. upon closing, which is
expected to occur by the end of the first quarter of 1998. The purchase price was
not disclosed.
In order to facilitate the acquisition and increase shareholder value, four of
Newriders' major shareholders have agreed to contribute a majority of their shares
back to the company. These shares will be used to fund the stock portion of the
purchase price, resulting in a significant increase in book value for all
shareholders.
Paisano, which was founded in 1970, has annual revenues of approximately $38
million. Joe Teresi, founder and chairman, will become a substantial shareholder
of Newriders, Inc., and will join the company's board of directors. He has also
agreed to remain as publisher of Paisano Publications.
Newriders also announced that they have retained Imperial Capital, LLC., a
subsidiary of Imperial Credit Industries (Nasdaq: ICII) as its investment banker and
financial advisor in this transaction. Imperial Capital, formerly Dabney-Resnick
Imperial, is a full service investment bank with extensive experience in raising
institutional debt and equity capital for middle market companies in diverse
industries.
John Martin, Chairman of Newriders, said, "I am very grateful to the four founding
shareholders for their contribution to this transaction. It is a great day for the
shareholders of Newriders. Paisano is a world class company, and I am looking
forward to working with Joe Teresi and Bill Prather, our chief executive officer, to
expand the business and to put Easyriders everywhere. Easyriders is a great
brand name, and we see tremendous opportunities for franchising, events, cafes,
motorcycle shops and apparel stores."
Joe Teresi, Chairman of Paisano commented, "I have been looking for some time
for the right combination of management and experience to help take Paisano to
the next level, and I think Newriders has that right combination. I am very
enthusiastic about what we will be able to accomplish together, and am looking
forward to working with John Martin and his team."
The following important factors may affect Newriders' actual results and could
cause such results to differ materially from the forward-looking statements made
by or on behalf of Newriders and/or Paisano Publications. Such factors include,
but are not limited to, changing market conditions, the impact of competitive
products and pricing, regulatory delays, availability of financing and other risks
detailed from time to time in Newriders' Security and Exchange Commission
filings.
Newriders is publicly traded on the Nasdaq Bulletin Board under the symbol
NWRD.
CONTACT: Newriders Inc.
Bill Nordstrom, 714/718-4630
or
Paine & Associates
David Paine, 714/755-0400
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