News-TGSK
GREAT WHITE ENTERS INTO A DEFINITIVE AGREEMENT TO
ACQUIRE THE YACHT CENTER DE MEXICO
---------------------------
Acquires Mexico Distribution Rights to Hatteras, Carver and Viking
Yachts; Anticipated Revenue Gains of US$7+ Million Annually;
Accretive to Earnings
Waco, Texas - August 11, 1998 - Great White Marine & Recreation, Inc.
(OTC BB: TGSK) announces that it has agreed to acquire the Yacht
Center de Mexico, located in Puerto Vallarta, Mexico for US$300,000 in
an all cash transaction. The transaction is anticipated to close
later this month and is expected to add more than $7 million in annual
revenues and be accretive to earnings in the first year.
Under the terms of the agreement, Great White will acquire the Yacht
Center's office space and existing equipment, charter boat inventory,
existing yacht inventory, Dock C and D at the Marina Vallarta, dry
rental storage space, repair shop, and Mexico distribution rights to
Hatteras Yachts(tm), Carver Yachts(tm), and Viking Fishing Boats(tm).
The Yacht Center is profitable and generated in excess of US$5 million
in gross revenues last year.
Great White will operate the Yacht Center under the Great White name
and designate it as the new Puerto Vallarta sales, servicing and
distribution center. This new facility will complement the existing
Monterrey, Mexico facility and enhance Great White's overall
distribution capabilities. Great White intends to use its financial
strength and broad range of marine and recreational products to expand
its operations at both facilities and create better cost economies and
relationships with both the manufacturers it represents and the
dealers it serves.
Colin Smith, Great White's President and Chief Executive Officer,
stated, "We are extremely excited by this latest development. Not
only does the acquisition of the Yacht Center give us a prime location
for a new base of operations in Puerto Vallarta, but it brings with it
the prestigious yacht lines of Hatteras, Carver, and Viking. Combined
with Great White's financial resources and existing product lines, we
should be able to achieve even higher levels of sales and
profitability. Also, our new location is in the center of the
upcoming National Boat Show of Mexico which will be held on November
12th. We believe this show will give us an excellent chance to
showcase our product lines and rapidly growing company." |
