Fidelity Holdings Signs Contract to Acquire Universal Kia
8 February 1999
Fidelity Holdings Signs Contract to Acquire Universal Kia
KEW GARDENS, N.Y.--Feb. 8, 1999---Consolidation Strategy Accelerates Regionally-
Fidelity Holdings, Inc. today announced that through its wholly-owned subsidiary Major Automotive, the Company signed a contract to acquire from Universal Ford, Inc., the Kia dealership d/b/a Universal Kia, based on Northern Boulevard in Long Island City, New York. The Company's regional acquisition strategy is firmly in place and this dealership is in the strategic Long Island City location dominated by Major Automotive. The acquisition price was not disclosed.
Bruce Bendell, Chairman and CEO of Fidelity, stated, "We believe that Universal Kia will benefit tremendously from its alliance with Major Automotive. The advantages of advanced internet exposure, existing advertising, media exposure and the backing of a public entity such as that to be provided to Major of the Five Towns, our most recently announced pending acquisition, will increase the volume of sales and opportunities presently not available to this dealership. Additionally, we expect Major Automotive's long-standing reputation and success in this location will garner great results for Universal Kia."
Doron Cohen, President of Fidelity, added, "As we continue to explore opportunities for our telecommunications and plastics division, we are most enthused with the great progress our automotive division is making in its regional acquisition strategy. We expect each division to accomplish great strides and become prime candidates for possible sale, merger, spin-off and/or consolidation."
Fidelity Holdings is a diversified holding company that utilizes information and technology to target industries experiencing consolidation and/or deregulation. The Company operates three divisions - Automotive, Plastics and Technology. The Automotive Division operates through Major Automotive Group, a leading consolidator of automotive dealerships in the New York Metropolitan area. The Technology Division operates under Computer Business Sciences and its newly formed IG2, Inc. subsidiary. The Plastics Division is developing proprietary products through existing patents.
Fidelity Holdings, Inc. is presently exploring the divestiture of its non-automotive activities by way of sale, merger, consolidation or other opportunities.
For additional information, visit our website at www.fdhg.com, www.majorautomotive.com and www.majorworld.com.
The information contained in this press release, including any "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 contained herein, should be reviewed in conjunction with the Company's annual report on form 10-K and other publicly available information regarding the Company, copies of which are available from the Company upon request. Such publicly available information sets forth many risks and uncertainties related to the Company's business and such statements, including risks and uncertainties related to that are unpredictable and outside of the influence and/or control of the Company.