DAWG, Check out MACE. They have a new CEO. This guy is good.
Mace Security International Announces Substantial Equity Investment,New Chairman and CEO, Change of Control and Aquisition by Merger
BENNINGTON, Vt., March 29 /PRNewswire/ -- Mace Security International, Inc. (MSI) (Nasdaq: MACE) announced today that it has reached an agreement with Louis D. Paolino, Jr. to become its Chairman and Chief Executive Officer, together with eight members of a new management team selected by Mr. Paolino. As a condition to his agreement to serve as CEO, the Company's current Board of Directors, other than Mr. Goodrich, will resign and be replaced by a new Board selected by Mr. Paolino. Also, Mr. Paolino, new Board Members and members of the new management team will purchase shares for a total capital investment of approximately $8.75 million. The shares will not be registered under the Securities Act of 1933, and thus, will not be freely tradable for a period of at least one year from the closing of the sale of the shares. Following the stock sales, Mr. Paolino will become the Company's largest shareholder.
Mr. Paolino, graduate of Drexel University with a B.S. in Civil Engineering, was formerly the Chairman, President and CEO of Eastern Environmental Services, Inc., a solid waste management services company. When Mr. Paolino joined Eastern in June 1996, the company's sales for that fiscal year totaled $7.6 million with a market value of less than $10 million with a stock price of $1.50. Mr. Paolino was responsible for implementing an aggressive acquisition policy that resulted in the completion of 60 acquisitions by the end of 1998, thus producing an annual sales run rate in exceeding $450 million. In a stock transaction announced in August of 1998 and closed on December 31, 1999, Eastern, then the country's fifth largest solid waste management company, was merged into industry leader Waste Management, Inc. with a valuation in excess of $1.3 billion and a Nasdaq stock value of $32 per share.
Simultaneous with the sale of shares, MSI will acquire by merger American Wash Services, Inc., a company headed by Mr. Paolino. American Wash Services, Inc., with its present locations and definitive purchase agreements, will operate 47 car washes generating expected revenue at an annual rate of approximately $41 million.
MSI's obligation to complete the transactions are conditioned on, among other things, approval by MSI's shareholders, continued listing on the Nasdaq National Market System, a due diligence investigation and receipt of a fairness opinion covering the merger and the sale of shares.
MSI believes the addition of a new car wash division will produce an exciting new profit center and at the same time serve as additional retail distribution locations for MSI's "impulse" personal protection products.
Jon E. Goodrich, President and CEO of Mace Security International, Inc., said, "I am truly excited that Mr. Paolino will be joining MSI as the new Chairman and CEO. I am confident that, with the effective leadership he demonstrated at Eastern, coupled with his vision, energy and track record of expansion through acquisitions, our Company can move forward to a period of rapid growth. We are fortunate that Mr. Paolino is making this commitment to lead us forward."
Marvin Brown, Chairman of the Company, said, "Over the past year, Jon and the Board of Directors have reviewed numerous options available to the Company in the interest of maximizing both short and long term stockholder value. Mr. Paolino's exceptional skills and history of success, along with his substantial equity investment in the Company and the addition of his proven management team, made this the most obvious selection."
Mr. Paolino said, "I am looking forward to joining Mace Security International, Inc. and eagerly anticipate the opportunity to lead the Company. Also, I am excited about the opportunity that the car wash industry offers as a multi-billion dollar highly-fragmented market with high margins and high cash flows. We plan to increase revenues in the car wash business both through an aggressive acquisition program as well as through internal growth. At the same time, the car washes will assist Mr. Goodrich in increasing sales in the consumer division."
The transactions are expected to close as soon as possible. At that time, Jon E. Goodrich will become Vice President of the existing business, Mace consumer sales, which will continue to operate in Bennington, Vermont.
Mace Security International, Inc. is a leading producer of less lethal defense sprays for the consumer market and a marketer and retailer of consumer safety and security products.
This press release includes statements which may constitute forward- looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. This information may involve risks and uncertainties, including without limitation, risks relating to the financial outcomes of the planned business and growth strategies, that could cause actual results to differ materially from the forward-looking statements. Although the Company believes that the expectations reflected in such forward- looking statements are based on reasonable assumptions, such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected.
SOURCE Mace Security International, Inc.
CO: Mace Security International, Inc.; American Wash Services, Inc.
ST: Vermont
IN: CHM
SU: PER TNM |
