Pacer Technology Acquires Leading Manufacturer of Nail
Clippers, Emery Boards and Related Manicure Products
Acquisition of Assets of Cook Bates to Add $20 Million in Revenue
RANCHO CUCAMONGA, Calif.--(BUSINESS WIRE)--March 4, 1998--Pacer Technology
(Nasdaq:PTCH - news), owner of such branded consumer products as Super Glue, ZAP and PRO
SEAL, Wednesday announced that it had acquired certain assets of Cook Bates, a Florida-based
manufacturer and marketer of nail clippers, emery boards and other related manicure implements.
Cook Bates is a division of London International Group Inc.
Cook Bates, founded in 1896, has been a long-standing leader and innovator in the design,
manufacturing and marketing of an extensive line of manicure products. These products are
marketed under such name brands as Gem and Mr. Mustache. The company holds numerous
patents and also licenses such brand-name products as Oleg Cassini and Brut. Cook Bates is also
the leading private-label supplier in this category.
The all-cash transaction was funded by the company's existing credit facility. Pacer Technology
President and Chief Executive Officer James Munn said the deal would add approximately $20
million in new revenue to Pacer and contribute positively to earnings on a pro forma basis, adjusted
to exclude one-time charges related to the acquisition.
Pacer has a long track record of steadily increasing revenues and profitability. Sales have more than
doubled since 1992 while operating income has tripled. Pacer's revenues and net income for the
year ended June 30, 1997 were $25.7 million and $1.2 million, respectively.
''We are delighted to acquire Cook Bates which was divested by its parent company, thereby
allowing it to focus on its medical and industrial gloves and condom businesses,'' said Munn. ''Not
only does this fine company make excellent products, but it is extremely strong in retail distribution
''This acquisition will open up key shelf space for Pacer's existing products and offer us the
opportunity to leverage our global distribution and marketing capabilities by cross-selling Cook
Bates' products with ours,'' he added.
Munn said the Cook Bates operations would be integrated with Pacer's Southern California and
Memphis facilities.
''We look forward to integrating the Cook Bates product line into the Pacer family of products,''
said Munn. ''We believe there are tremendous synergies with our marketing, manufacturing and
distribution capabilities.
''Cook Bates products are distributed in over 20,000 outlets including mass merchandisers and
drug and grocery chains. These include such customers as Wal-Mart, Kmart, Walgreens and
Rite-Aid,'' explained Munn.
Pacer is a manufacturer and worldwide marketer of advanced technology adhesives, sealants and
related products for a variety of consumer, industrial and automotive applications. It is the provider
of Super Glue, ZAP, PRO SEAL, and other well-known branded products.
For more information about Pacer via facsimile call 800-PRO-INFO and dial client code ''PTCH.''
Except for historical information contained herein, the matters set forth in this news release are
forward-looking statements that are subject to certain risks and uncertainties that could cause actual
results to differ materially from those set forth herein in the forward-looking statements, including
such factors, among others, as significant fluctuations in operating results, uncertain market
acceptance of the company's products and intense competition.
Contact:
Pacer Technology, Rancho Cucamonga
Roberto J. Cavazos, Jr., 909/987-0550 |
