Mace Security International Expands Into Truck Wash Service Business
27 March 2000
Mace Security International Expands Into Truck Wash Service Business With Two Major Truck Wash Chains Generating $4.1 Million In Annual Sales
MOUNT LAUREL, N.J., March 27 Mace Security International,
Inc. (Mace) today announced that it has entered into the truck
wash service business by completing the acquisition of Red Baron Truck Wash
(Red Baron), a truck wash chain operating five locations. Two of the
locations are in Arizona with the three other locations being in Indiana, Ohio
and Texas. The Company also announced that it has an executed definitive
purchase agreement to acquire Planet Truck Wash (Planet), a truck wash chain
operating two locations in Amarillo and El Paso, Texas.
The Planet Truck Wash agreement is subject to customary closing
conditions. There can be no assurance that this acquisition will ultimately
be closed. However, the Company is confident that the conditions will be
satisfied.
The Red Baron and Planet truck wash chains are well-established
businesses. Planet operates unique automated washing and waxing equipment
specifically designed for tractor-trailer and fleet transport vehicles.
Combined, Red Baron and Planet consist of seven locations generating
approximately $4.1 million annually.
The Company believes that the truck wash service industry generates
revenues of approximately one billion dollars annually consisting of small
chains and several individually owned truck washes throughout the United
States. The largest truck wash chain controls less than five percent of the
entire market. Mace entered this industry to maximize its opportunity of
becoming a national provider of vehicle cleaning services nationwide. In
addition, Planet's automated system is very similar to the automated car wash
equipment used by the Company. The Company believes that this addition is a
natural fit to Mace's current business plan.
Mace anticipates growth within this industry through the construction of
additional locations and the acquisition of other existing profitable
locations. Mace plans to implement a strategic plan focused on establishing
long term fleet account contracts with reputable truck service related
businesses nationwide. The fleet account contract opportunities are
anticipated to be realized as the Company begins to establish a critical mass
of truck wash locations across the nation. Currently, Red Baron and Planet
have several small fleet account contracts.
Louis D. Paolino, Jr., CEO and Chairman of Mace, said, "We are pleased to
be expanding our operation into the specialized wash service sector of the
industry. The truck wash sector of the automotive industry is under-developed
and has tremendous potential for significant growth throughout the United
States. We feel that our penetration into this business is exciting for
Mace's current operation because it significantly enhances and broadens our
growth opportunities. The truck wash service business is similar to the car
wash service business because it contains high profit margins, real assets and
achievable internal growth potential. Mace's truck wash division plans to
maximize internal growth by establishing long term fleet account contracts."
Mr. Paolino added, "Jim Grandlich, Red Baron's founder, owner and
president, will continue with Mace and direct the development and operational
expansion plan for the Company's truck wash division. Mr. Grandlich has over
20 years experience in the truck wash business, including eight years as
general manager of Blue Beacon Truck Wash, which is one of the largest truck
wash chains in the country. His broad experience makes him a valuable asset
as we begin to implement our truck wash operational and growth strategies."
Mace Security International, Inc. is a provider of car care services,
which owns and operates numerous car washes nationwide. The Company, through
its wholly owned subsidiary, Innovative Control Systems, Inc., is also a
leading manufacturer and supplier of a Windows(R)-based computerized car wash
tunnel control system. Additionally, MSI is a leading producer of less lethal
defense sprays for the consumer market.
This press release includes statements which may constitute forward-
looking statements made pursuant to the safe harbor provision of the Private
Securities Litigation Reform Act of 1995. This information may involve risks
and uncertainties, including but not limitation, risks relating to the
financial outcomes of the planned business and growth strategies, that could
cause actual results to differ materially from the forward-looking statements.
Although the Company believes that the expectations reflected in such forward-
looking statements are based on reasonable assumptions, such statements are
subject to risks and uncertainties that could cause actual results to differ
materially from those projected.