CNGR, NEWS IS OUT, Expands PAACO to Houston, Increases ownership,
(BSNS WIRE) Crown Group, Inc. Increases Ownership in Paaco Automotive Gr
Crown Group, Inc. Increases Ownership in Paaco Automotive Group to 80%; Paaco
Opens First Dealership in Houston Market
Business Editors
DALLAS--(BUSINESS WIRE)--Feb. 10, 1999--Crown Group, Inc.
(Nasdaq: CNGR) today announced that it has acquired an additional
15% ownership interest in Paaco Automotive Group for approximately $1
million in cash and the issuance of 257,811 shares of Crown Group
common stock. Crown now owns 80% of Paaco.
Crown also announced that Paaco has entered the Houston market,
with the opening of its first used car dealership in that city. On
January 16, 1999, Paaco opened its first Houston dealership at the
corner of Interstate 45 and Tidwell Road in the northern section of
the city. The company currently has about 80 cars on the site and
expects to increase the dealership's inventory to approximately 100
vehicles in the near future.
"We are very excited about our expansion into Houston, which
represents Paaco's first new market outside of the Dallas-Ft. Worth
area," commented Larry Lange, Chairman and Chief Executive Officer of
Paaco. "Our first Houston dealership is located in an area which has
ideal demographics for our largely-Hispanic customer base and
excellent visibility on the busy Interstate 45 corridor. We plan to
open our second used car dealership in Houston by March 1st and hope
to expand our presence in that market during the balance of the year.
We believe that Houston can ultimately develop into a dynamic market
which is comparable to the Dallas-Ft. Worth area in its contribution
to our company's sales."
Paaco currently operates eight used car dealerships in the
Dallas-Ft. Worth area. The dealerships, which cater primarily to an
Hispanic clientele, provide installment financing for over 95% of the
automobiles which are purchased by its customers. A vertically
integrated company, Paaco assures the quality of the cars sold by its
dealerships through the adherence to strict purchasing criteria and by
thoroughly reconditioning vehicles, prior to sale, at its centralized
facility in Dallas.
"We have been very pleased with Paaco's performance since we
first invested in the company in February 1998, and we have great
confidence in management and Paaco's potential to expand beyond its
traditional Dallas-Ft. Worth market," stated Edward R. McMurphy,
President and Chief Executive Officer of Crown Group, Inc. "Paaco's
sales should approach $70 million in our fiscal year ending April 30,
1999, and we believe that expansion in existing and new markets will
allow growth to continue at an impressive rate well into the 21st
Century."
Crown Group, Inc. is a publicly traded buy-out firm which seeks
to enhance shareholder value through the acquisition, development and
operation of small-cap companies with significant growth potential.
Crown Group currently owns (i) 100% of America's Car Mart and 80% of
Paaco Automotive Group, vertically integrated used car sales and
finance companies; (ii) 100% of Precision IBC, a firm specializing in
the sale and rental of intermediate bulk containers; (iii) 80% of
Concorde Acceptance Corporation, a sub-prime mortgage lender; (iv) 49%
of Casino Magic Neuquen, a casino operator in the Province of Neuquen,
Argentina; and (v) 80% of Home Stay Lodges, a partnership which is
involved in the development and operation of extended-stay lodging
facilities.
Crown Group, Inc. is headquartered in Dallas, Texas, and its
common stock is traded on Nasdaq under the symbol "CNGR".
This press release includes statements that may constitute
"forward-looking" statements, usually containing the words "believe",
"estimate", "project", "expect", or similar expressions. These
statements are made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. Forward-looking
statements inherently involve risks and uncertainties that could cause
actual results to differ materially from the forward-looking
statements. Factors that could cause or contribute to such differences
include, but are not limited to, changing economic conditions, changes
in interest rates, continued acceptance of the Company's products and
services in the marketplace, competitive factors, dependence upon
lenders, and other risks detailed in the Company's periodic filings
with the Securities and Exchange Commission. By making these
forward-looking statements, the Company undertakes no obligation to
update these statements for revisions or changes after the date of
this release.
--30--LS/na*
CONTACT: Crown Group Inc.
Edward R. McMurphy or Ed Preuss Jr., 972/717-3423
or
R.J. Falkner & Co. Inc.
R. Jerry Falkner, 800/377-9893
KEYWORD: TEXAS
INDUSTRY KEYWORD: AUTOMOTIVE BANKING REAL ESTATE
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