Share Repurchase of The Colonel's International Canceled
12 December 1997
Share Repurchase of The Colonel's International Canceled
MILAN, Mich., Dec. 12 -- The Colonel's International, Inc.
, a manufacturer and distributor of automotive parts and
supplies, disclosed today that the proposed repurchase of 20.8 million shares
from its largest shareholder, Donald Williamson, has been canceled by Mr.
Williamson.
Mr. Williamson, a high profile figure in the automotive industry,
explained that "the prospects of the Company are so good that it would not be
prudent for me to sell a large amount of shares at this time."
The Company currently has 24,177,805 shares outstanding, of which Mr.
Williamson and his wife, Patsy, own 22,243,580 shares, or 97 percent of the
total outstanding. Had the repurchase been completed, the Williamsons'
ownership would have been reduced to 82 percent of the then outstanding
3,360,725 shares. The purchase price of the block of stock was to have been
$5 million.
Mr. Williamson continued that "while the sale of this large block of stock
to the company will not occur, I probably will sell some portion of my shares
from time to time in order to create more liquidity in the market.
"Perhaps, a more compelling reason for my decision was that based on the
Company's prospects, the value of that block of stock is worth substantially
more than the price I would have received from the Company."
The Colonel's is a growing participant in the light truck and the sports
utility vehicle parts and supplies manufacturing and distribution business.
Recently published reports have cited this sector of the auto market as the
fastest growing segment of the industry. Forecasts suggest that, in aggregate
numbers, it may soon exceed the number of automobiles on the road.
The Colonel's, which manufactures replacement bumpers for automobiles as
well as bedliners and other accessories for light trucks, recently announced
the acquisition of the retail operations of Eastern Off-Road Equipment, Inc.,
a seven-outlet chain that sells over 3,000 parts and accessories for light
trucks and sport utility vehicles.
The Eastern-Off Road acquisition was part of the Company's plan to become
a vertically integrated operation within the automotive industry. A Company
spokesperson said that "we intend to take full advantage of industry
consolidation by acquiring smaller, profitable and well-run companies in all
facets of the business."
For the nine-month period ended September 30, The Colonel's reported
revenues of $35 million, compared with $29.6 million a year earlier, and
earnings per share of fourteen cents, compared with eight cents for the like
period in 1996.
Mr. Williamson indicated that "not only will this trend continue, but it
might accelerate."
The Colonel's International, Inc. has three wholly owned subsidiaries.
The Colonel's, Inc., based in Milan, Michigan, manufactures and distributes
aftermarket bumpers and facias. The Colonel's Truck Accessories, Inc., based
in Owosso, Michigan, manufactures and distributes truck accessory parts.
Brainerd International Raceway, Inc., located in Brainerd, Minnesota, operates
a motor sports facility and holds drag races and other events during the
summer months.
This news release includes certain statements that may be considered
forward-looking under the Private Securities Litigation Reform Act of 1995.
These statements are subject to a number of important risks and uncertainties
that could cause the contemplated transactions not to occur.
SOURCE The Colonel's International, Inc.