New ThermaCell Acquisitions Will Add $2 Million in Revenues & Make Company Profitable in FY99
SARASOTA, Fla., Oct. 15 /PRNewswire/ -- ThermaCell Technologies, Inc. (Nasdaq: VCLL - news, VCLLW - news) has signed an agreement to acquire two, profitable, privately held companies -- Sealco Systems, Inc. and T-Coast Pavers, Inc. of Stewart, Florida -- for $1 million in cash, stock and a management contract. With more than $2 million in sales, the acquisitions will nearly double ThermaCell's revenues and enable it to become profitable for the first time since inception, starting with the March 1999 quarter.
John Pidorenko, ThermaCell Chairman, President and CEO, said the acquisitions will also enhance future profitability and expansion into new markets, providing greater strategic value than others under consideration. As a result, he said ThermaCell and American Paints, Inc. had mutually decided to terminate ThermaCell's recently announced letter of intent to acquire the Pompano Beach company. Now, on a clear path to profitability within a relatively short time frame, Mr. Pidorenko said that he believes ThermaCell stock price should move in a positive direction.
Sealco provides outdoor sealing and weather-proofing services while T-Coast manufactures and installs brick-like pavers used in construction. Both are leaders in the Florida residential and commercial markets. As part of ThermaCell, they will expand use of ThermaCell's VaxCell(TM) microsphere enhanced products, enabling ThermaCell to become vertically integrated with greater gross profit margins and a larger market potential. VaxCell(TM)microspheres are uniform, hollow, glass bubbles that look like fine, white sand. In coatings, VaxCells(TM) create a barrier that is more effective and less expensive for sealing and weather-proofing. In building materials, VaxCells(TM) create greater product strength and endurance at a lower weight and cost.
Mr. Pidorenko said the timing of the new acquisitions coincides with ThermaCell's plans to open its first VaxCell(TM) production facility in the December 1998 quarter. With the plant on line and ThermaCell's ability to manufacture technologically enhanced coatings and building products at a lower cost than conventional materials, Mr. Pidorenko said the Company had begun to examine other vertical acquisitions to expand sales and gross profit margins. The Sealco and T-Coast acquisitions are subject to customary due diligence and the execution of a definitive agreement.
ThermaCell Technologies, Inc. is a vertically integrated manufacturer and marketer of technologically enhanced coatings and building materials that provide greater insulation, protection, strength, longevity and value at a lower cost than conventional materials. For the nine months ended June 30, 1998, ThermaCell sales increased 227% to $2,259,814 compared to the year ago period while net loss dropped to $238,354 or $0.08 per basic share compared to a net loss of $866,104 or $0.50 per share in the year ago period.
Company Contact: Gary Fishman or Kimberly Boshara, 212-527-4808
Forward-Looking Statements: This news release contains certain ''forward-looking'' statements within the meaning of the Private Securities Litigation Reform Act of 1995, which provides a new ''safe harbor'' for these types of statements. To the extent statements in this news release involve, without limitation, product development and introduction plans, the Company's expectations for growth, estimates of future revenue, expenses, profit, cash flow, balance sheet items, sell-through or backlog, forecasts of demand or market trends for the Company's product categories and for the industries in which the Company operates, or any other guidance on future periods, these statements are forward-looking statements. The Company assumes no obligation to update forward-looking statements.
SOURCE: ThermaCell Technologies, Inc. |
