Creative Host Services Completes Letter of IntentFor Strategic Acquisition of GladCo Enterprises
Company to Add Twenty Airport Concession Locations
Totaling More Than $10.5 Million in Revenues
SAN DIEGO, July 28 /PRNewswire/ -- Creative Host Services, Inc. (Nasdaq: CHST) today announced it has signed a letter of intent to acquire GladCo Enterprises, Inc., a Pittsburgh-based hospitality and service company with $10.5 million in annual revenues, that operates food and beverage concessions in four international airports.
Upon completion of the acquisition, GladCo will become a wholly-owned subsidiary of Creative Host Services; no noticeable change will occur to any of GladCo's storefronts, method of operation or GladCo's current management team, led by 30-year industry veteran, Louis Coccoli, Jr., who will remain President of GladCo Enterprises. Through the acquisition, Creative Host will quickly enhance its presence on the East Coast through representation by GladCo's corporate office in Pittsburgh.
GladCo currently manages concessions in four airports, including Pittsburgh International; Atlantic City International; Albany International, in New York; and M.B.S. International, located in Freeland, Michigan. The Company has also signed a letter of intent for two store locations in the Newark, New Jersey International Airport, with projected annual sales of more than $3.7 million. In addition to its own signature facilities, GladCo operates several national brands, including Schlotzky's Deli, Hot Licks Bar & Grill and Samuel Adams Brew Pub, and has an exclusive agreement with Yuengling Brewery, the oldest brewery in the United States.
Sayed Ali, President and Chairman of Creative Host, stated, "This strategic acquisition will be a major milestone in the history of Creative Host, as it represents management's diligent efforts to increase our shareholder value and remain true to our corporate strategy of growing through acquisitions. With the combined experience of GladCo and Creative Host, we are confident this acquisition will enable us to obtain additional contracts in large airports, enhance our operational efficiencies and accelerate the growth of our company. At the close of the acquisition, we anticipate the combined Companies will represent nearly $40 million in annual revenues and will possess the ingredients needed to take our Company to the next level of success."
Creative Host and GladCo expect to enter into a definitive stock purchase agreement in the near future, at which time the acquisition terms will be announced. Creative Host has also decided to terminate acquisition discussions with Cafe Diva.
About Creative Host Services, Inc.
Creative Host Services, Inc. is engaged in the business of acquiring, managing and operating airport concessions such as food and beverage, news and gift and other concessions throughout the United States. In addition, the Company provides in-flight catering to certain national airlines at nine of its airport locations. The Company currently has 43 operating facilities at 21 airports. Forty-two are company owned and one is franchised. Six of the Company's 42 operating concessions are food courts, each consisting of several food and beverage restaurants that are located within each court. If the various food courts were separated and counted as individual concessions, Creative Host would operate approximately 70 concessions overall. To simplify accounting, the Company counts its various food courts as only one concession.
Creative Host enjoys co-branding relationships with several national and regional companies such as Carl's Jr., Taco Bell, Little Caesars Pizza, TCBY Yogurt, Mrs. Field's Cookies, Nathan's Famous Hotdogs and Pretzelmaker.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements which are not historical facts contained in this news release are forward-looking statements that involve risks and uncertainties, including but not limited to risks associated with the uncertainty of future financial results, additional financing requirements, intense competition, the uncertainty of governmental approvals, risks described in other reports made by the public company and other risks adherent in the Company's business. There is no assurance that the Company will accomplish any goals expressed or implied in forward-looking statements, including this acquisition closure.
FOR MORE INFORMATION CONTACT:
Creative Host Services
Sayed Ali
Tel: 858-587-7300
or
Continental Capital & Equity Corporation
Pat Shane
Tel: 407-682-2001
lazlo@insidewallstreet.com
SOURCE Creative Host Services, Inc.
CO: Creative Host Services, Inc.; GladCo Enterprises, Inc.; Continental Capital & Equity Corporation
ST: California, Pennsylvania
IN: AIR RLT RST
SU: TNM
07/28/2000 09:02 EDT prnewswire.com |
