NEWS Newriders Inc. Solidifies Deal With Paisano Publications, Hires Investment Banker To Assist in Financing
Business Wire - January 15, 1998 06:16
%NEWRIDERS NWRD ICII %CALIFORNIA %PUBLISHING %RESTAURANTS %MANAGEMENT %CHANGES %MERGERS %ACQ V%BW P%BW
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NEWPORT BEACH, Calif.--(BUSINESS WIRE)--Jan. 15, 1998--Newriders, Inc., operator of two Easyriders Cafes, has signed a binding letter of intent to acquire privately held Paisano Publications, Inc. and subsidiaries, based in Agoura, Calif., for a combination of stock and cash. Paisano is the publisher of Easyriders Magazine and several other motorcycle lifestyle magazines, and is the franchisor for motorcycle shops, apparel stores and cafes using the Easyriders name. Newriders, Inc. will change its name to Easyriders, Inc. upon closing, which is expected to occur by the end of the first quarter of 1998. The purchase price was not disclosed.
In order to facilitate the acquisition and increase shareholder value, four of Newriders' major shareholders have agreed to contribute a majority of their shares back to the company. These shares will be used to fund the stock portion of the purchase price, resulting in a significant increase in book value for all shareholders.
Paisano, which was founded in 1970, has annual revenues of approximately $38 million. Joe Teresi, founder and chairman, will become a substantial shareholder of Newriders, Inc., and will join the company's board of directors. He has also agreed to remain as publisher of Paisano Publications.
Newriders also announced that they have retained Imperial Capital, LLC., a subsidiary of Imperial Credit Industries (Nasdaq: ICII) as its investment banker and financial advisor in this transaction. Imperial Capital, formerly Dabney-Resnick Imperial, is a full service investment bank with extensive experience in raising institutional debt and equity capital for middle market companies in diverse industries.
John Martin, Chairman of Newriders, said, "I am very grateful to the four founding shareholders for their contribution to this transaction. It is a great day for the shareholders of Newriders. Paisano is a world class company, and I am looking forward to working with Joe Teresi and Bill Prather, our chief executive officer, to expand the business and to put Easyriders everywhere. Easyriders is a great brand name, and we see tremendous opportunities for franchising, events, cafes, motorcycle shops and apparel stores."
Joe Teresi, Chairman of Paisano commented, "I have been looking for some time for the right combination of management and experience to help take Paisano to the next level, and I think Newriders has that right combination. I am very enthusiastic about what we will be able to accomplish together, and am looking forward to working with John Martin and his team."
The following important factors may affect Newriders' actual results and could cause such results to differ materially from the forward-looking statements made by or on behalf of Newriders and/or Paisano Publications. Such factors include, but are not limited to, changing market conditions, the impact of competitive products and pricing, regulatory delays, availability of financing and other risks detailed from time to time in Newriders' Security and Exchange Commission filings.
Newriders is publicly traded on the Nasdaq Bulletin Board under the symbol NWRD.
CONTACT: Newriders Inc. Bill Nordstrom, 714/718-4630 or Paine & Associates David Paine, 714/755-0400
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