Pickups Plus, Inc. To Purchase Auto Preservation; Company Signs Binding Letter of Intent To Purchase Certain Assets of Automotive International, Inc.
CINCINNATI--April 19, 2004--Pickups Plus, Inc. (OTCBB:PUPS), a leading retailer and national franchiser in the $38 billion truck and SUV aftermarket accessory industry, today announced it has signed a binding Letter of Intent to purchase certain assets of Automotive International Inc. ("AI") a privately owned Cincinnati, Ohio based company. AI is a major manufacturer and distributor of environmental protection products. Its Auto Preservation division ("AP") provides automotive dealerships a single source solution for their new vehicle preparation, environmental protection packages, pickup truck and SUV accessories, and detail and reconditioning products and services.The Letter of Intent provides Automotive International a $1.7 million valuation for its business. The acquisition terms call for a percentage in cash and the remainder in the common stock of Pickups Plus valued well above today's market value. Pickups Plus is currently in the process of securing the necessary funding and completing its final due diligence analysis.
"This acquisition will double the revenue of Pickups Plus while continuing the strategy to expand through both retail stores and dealership outlets. As we went to market with our dealership accessory program, the one request we continued to receive was, could we provide a one-stop shopping solution for all of the dealers outsourcing needs," said Mr. Jesson, president and chief executive officer of Pickups Plus.
"The Auto Preservation group processed 15,000 vehicles last year in the Cincinnati area alone. Its service offering rounds out our dealership program and provides our franchisees and company stores an immediate and ongoing revenue stream that utilizes many of the same assets and facilities that are already in place," said Jesson. "In addition, the management and sales staff within Auto Preservation will allow us to truly offer dealers a Single Source Solution and provide us with the expertise to support or partners on a national basis."
"After reviewing Pickups Plus' expansion and distribution strategy, it just made sense to see if we could combine the two companies and pickup the overwhelming synergies," said Richard Hallberg, Jr., president and CEO of Automotive International. "Pickups Plus' hub and spoke strategy with a key company store being surrounded by franchisees and distributors ensures our dealership customers will receive the same level of service our Cincinnati customer base has come to expect from us over the last 20 years. Both myself and the members of the Auto Preservation team are looking forward to a nationwide rolling out this turnkey offering to dealerships and distributors."
ABOUT PICK-UPS PLUS, INC.
Pick-Ups Plus, Inc. is a leading operator and franchiser of retail automotive parts and accessories stores catering to the light truck market, which is considered to be the fastest growing segment of the motor vehicle market in the United States. There are currently six Pick-Ups Plus franchised locations and two Company owned-stores in operation. The Company intends to pursue an aggressive expansion strategy by opening additional company-owned stores and franchise locations to become the first nationwide chain in its growing, but highly fragmented industry. For more information about the Company go to www.pickupsplus.com and look for updates in the Chairman's Letter, which will be posted monthly.
Safe Harbor Statement: Except for historical information contained herein, the statements made in this press release are forward-looking and are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933, Section 21E of the Securities Act of 1934 and the Private Securities Litigation Act of 1995. Forward-looking statements involve known risk and uncertainties, which may cause the Company's actual results in the future to differ materially from forecasted results.