R&B to Acquire International Operations
3 November 1997
R&B to Acquire International OperationsCOLMAR, Pa., Nov. 3 -- R&B, Inc. announced today that it has signed a letter of intent to acquire Scan-Tech USA/Sweden AB and related assets("Scan-Tech")for $1 million in cash, 350,000 shares of R&B common stock and the assumption of approximately $1 million in bank debt. The transfer of common stock is contingent on several factors including future financial performance of Scan-Tech and continued involvement by existing management. Headquartered in Stockholm, Sweden, Scan-Tech is a privately held company which distributes replacement automotive parts, primarily Volvo and Saab, throughout Europe, Russia, the Middle East and the Far East. Scan-Tech has annual net sales of approximately $10 million. The transaction is expected to be completed in January 1998, and is subject to certain pre-closing conditions and post-closing adjustments. The transaction is expected to be non-dilutive. Richard Berman, president of R&B, stated, "We are very excited about launching our international activities through the acquisition of Scan-Tech. The existing distribution system of Scan-Tech, along with its experienced management team, will allow us to quickly reach major world markets with many of our existing products. In addition, the added volume of foreign automotive replacement parts will permit us to further enhance the breadth of our product lines - creating even greater opportunities for our customers." Mr. Berman went on to say, "We have been interested in participating in the international market for some time, but never were able to find the right combination of people, product focus and distribution. In Scan-Tech and their management team, we believe we have found just the right partner to build a global market for our focus on hard-to-find parts and fasteners." This is the second acquisition being announced in as many weeks. On October 20, 1997, R&B announced that it signed a letter of intent to acquire selective assets of the Service Line Division of Standard Motor Products, Inc. . The Service Line, with annual sales of approximately $40 million, includes the Champ Service Line, APS Service Line and Pik-A-Nut. R&B, Inc. is a leading supplier of "hard-to-find" parts and fasteners for the automotive aftermarket. R&B's parts are marketed under more than fifty proprietary brand names, through its Motormite and Dorman divisions, as well as under the private labels of automobile manufacturers, parts manufacturers, and national warehouse distributors. Forward looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. Readers are cautioned not to place undue reliance on these forward looking statements which speak only as of the date hereof. Factors that cause actual results to differ materially include, but are not limited to, those factors discussed in the Company's Annual Report on Form 10-K under "Business - Investment Considerations." Visit R&B's Home Page at http://www.rbinc.com SOURCE R&B, Inc.