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Friday March 27, 9:33 am Eastern Time
Company Press Release
TASA Announces Agreement to Acquire Drake Business Schools
NEW YORK--(BUSINESS WIRE)--March 27, 1998--Touchstone Applied Science Associates (NASDAQ:TASA
- news), Brewster, NY, announced today at its annual stockholder meeting that it has reached agreement to acquire
the Drake Business Schools. Drake operates and manages post-secondary schools in the New York City
metropolitan area. Mr. Andrew Simon, Chairman and Chief Executive Officer, made the announcement of the signed
letter of intent. The cash purchase price of $2,500,000 is to be financed by bank borrowings.
Mr. Simon told stockholders ''TASA is currently in both the instructional and assessment segments of the educational
marketplace. As part of our strategic plan, we identified expansion into the educational delivery channel as a key
objective. Within this new channel, we made the decision to explore acquisitions in the post-secondary proprietary
schools market. In our opinion, this category is counter cyclical, has demonstrated strong growth trends, and we
anticipate that it will show long-term accelerated growth based upon the changing socioeconomic trends. Finally, the
barriers to entry by new competitors is great.
''After examination of a number of candidates in numerous geographic areas, we have been fortunate to execute a
letter of intent to acquire the Drake Business Schools. These schools have been in existence for 125 years in the New
York City area and enjoy an excellent reputation. We believe that by acquiring the Drake Business Schools, TASA
has established a highly successful delivery channel consistent with our overall long-term objectives.'' Mr. Simon
noted, ''Management and leadership are very important to us. Mr. Basil Katsamakis, President and CEO of Drake,
has agreed to continue in that role for TASA post acquisition. Mr. Katsamakis has led the Drake Schools to
continuing annual growth.''
Mr. Simon continued, ''This acquisition should be accretive to per share earning, and positions TASA to continue its
growth. Between 1996 and 1998, TASA will have more than doubled its core business revenues. Based on Drake's
estimating approximately $8 million in revenues for its fiscal year ended April 30, 1998 and anticipated future growth,
our revenues should again increase over 350% between 1997 and 2000. Further, the acquisition of Drake should
result in our reporting an EBITDA of over $3 million in fiscal 1999, the first full fiscal year after the acquisition.
The acquisition of Drake is subject to execution of a Stock Purchase Agreement, final due diligence and other
customary conditions. The closing of the acquisition of Drake is anticipated to occur on approximately June 30, 1998.
TASA is an educational information and learning company. TASA provides the educational market, including
individual states, schools and colleges and universities with select learning, assessment, and evaluation tools. The
Company develops, publishes, and distributes a highly regarded, proprietary line of reading tests, and designs tests
specifically to meet clients' measurement specifications. Through its wholly-owned subsidiary, Modern Learning Press,
Inc., the Company designs, publishes and distributes affordable ''consumable'' student workbooks for grades K-4,
and creates and publishes books and pamphlets for elementary school teachers and parents. The Company's
subsidiary, BETA, Inc., designs tests and evaluates assessment needs for states, school districts and test and textbook
publishers. Visit the TASA website at www.tasa.com.
For further information, please contact either Mr. Andrew Simon 914-277-8100 or Mr. John M. Dutton at
213-630-4401.
Statements contained in this release, which are not historical facts, are ''forward-looking'' statements as contemplated
by the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and
uncertainties, which could cause actual results to differ materially from those projected or implied in the
forward-looking statements.
Contact:
Touchstone Applied Science Associates Inc.
Andrew Simon, 914/277-8100
or
John M. Dutton 213/630-4401
More Quotes and News:
Touchstone Applied Science Association Inc (Nasdaq:TASA - news)
Related News Categories: education, publishing
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