PHILADELPHIA--(BUSINESS WIRE)--Dec. 3, 1998--Berger Holdings Ltd. (NASDAQ:BGRH
- news) announced that it has signed an agreement to purchase the assets (exclusive of real estate) of
Sheet Metal Manufacturing Co. Inc. of Ridgewood, N.Y. and Waterbury, Conn.
The acquisition is expected to close on or about Dec. 7, 1998 and is subject to normal closing
conditions.
The purchase price will be paid through a combination of bank and seller financing. No additional
equity will be issued.
Sheet Metal is expected to have revenue of approximately $11 million in the year ending Dec. 31,
1998. Berger is expecting revenue for 1998 of approximately $35 million, which is up from $20.7
million in 1997. Berger expects cash generated from operations (EBITDA) to be approximately
$4.2 million in 1998 vs. $2.4 million in 1997.
Theodore A. Schwartz, chairman, CEO, stated, ''As previously reported, after acquiring the roof
drainage business from Benjamin Obdyke in January of this year, we proceeded to build our
infrastructure to accommodate a significantly larger revenue base. We have increased our
manufacturing, administrative, warehousing, and distribution space from 105,000 square feet to over
250,000 square feet.''
He further stated, ''We believe that this acquisition of Sheet Metal represents an initial step toward
accretively utilizing this added capacity, and should have a positive impact on our operating results as
early as the first quarter of 1999.''
Berger Holdings Ltd. is the parent company of Berger Bros Co. founded in 1874 and is a
manufacturer of roof drainage products and a complete line of residential and commercial snow
guards used in new construction, remodeling and renovation market |
