News - Completion of More Acquisitions|
The Source Completes MYCO and Chestnut Acquisitions
ST. LOUIS, March 9 /PRNewswire/ -- The Source Information Management Company (NASDAQ:SORC) announced today it has completed the acquisitions of MYCO Inc. and Chestnut Display Systems - North Inc., leading manufacturers of in-store merchandising units and point-of-purchase displays for retail store chains. The combined business of the two companies is believed to represent approximately one-third of the total front-end manufacturing industry in the United States.
Source Chairman and Chief Executive Officer Leslie Flegel said, "These
acquisitions further strengthen our leadership position in the front-end display industry by vastly expanding our ability to create fixtures that best serve the needs of vendors who position merchandise at the checkout. We have built core capabilities in design, distribution and manufacturing of front-end displays which in turn have helped us cement relationships with the retail community. Our information services and overall e-commerce are attractive to a broad range of vendors. Additionally, the synergies and relationships inherent to both MYCO and Chestnut will increase the reach of our Interactive Communications Network, enhancing our position as a premier infomediary between retailers, publishers and other major marketers."
Source said the expanded opportunities for the Interactive Communications Network, or ICN, which helps retailers ensure magazine bar code accuracy via a streamlined Internet encrypted site, while providing publishers with an effective tool to market new titles or special issues has received remarkable acceptance. Last month, the Company announced that 15 publishers including Times-Mirror, Hearst and Ziff-Davis have signed agreements to perform business over the network.
The Company said it acquired the assets and assumed the liabilities of MYCO, based in Rockford, Illinois, for $12 million in cash and 134,615 shares of Source stock. For the year ended December 31, 1998, MYCO's revenue was approximately $20 million. Included in the MYCO acquisition was a 350,000 square foot manufacturing facility, also located in Rockford. Certain assets and liabilities of Chestnut Display Systems, based in Jacksonville, Florida, were purchased for approximately $3.6 million in cash and 285,714 shares of stock. Chestnut Display Systems' 1998 revenue was $9 million. The combined revenue of the companies, including Source, is expected to be in excess of $70 million by January 2000. Source said it anticipates the acquisitions to be accretive to earnings in the current fiscal year of 2000.
Source is an innovative "infomediary" company which provides front-end
rebate collection and information services to about 825 retailers in the United States and Canada through nine offices. It also is the largest manufacturer in North America of display racks located at check-out counters. From its base businesses, knowledge and relationships in retailing and publishing, Source has evolved into an Internet-based company through its ICN communication network which uses innovative, state-of-the-art technology to give retailers and their vendors a cutting-edge system for communicating and conducting e-commerce.
The information contained in this release includes statements regarding matters which are not historical facts (including statements regarding the plans, beliefs or expectations of The Source Information Management Company) which are forward-looking statements.....