Auxer Signs Letter of Intent to Acquire $30 Million Telecommunications Distributor
28 July 2000
Auxer Signs Letter of Intent to Acquire $30 Million Telecommunications Distributor
WEST PATERSON, N.J. - The Auxer Group, Inc. announced today that it has signed a letter of intent to acquire the assets of Clifton Telecom Alliance a northeast United States distributor of prepaid phone cards. While the terms have not been disclosed, Auxer has agreed to pay cash and stock as consideration for the assets under a binding agreement. Clifton Telecom Alliance is projected to generate $25 - 30 million in revenue during the initial twelve months under the Auxer Telecom Group.The assets and operations of Clifton Telecom Alliance are to be integrated as part of the Auxer Telecom Group. Based on a successful transition of Clifton Telecom Alliance into the Auxer Telecom Group, Auxer has entered into discussions to acquire a second distributor located in the northeastern United States with estimated revenues of $30 million. Under Auxer's strategy, these distributors are only the initial additions to the Auxer Telecom Group. Auxer has planned discussions over the next 60 days with additional distribution operations to acquire additional telecommunications traffic. "By combining the revenue from Clifton Telecom Alliance and Auxer Telecom Switch Operation, Auxer projects the Auxer Telecom Group will generate increased profits," said Eugene Chiaramonte, Chairman of Auxer.
ABOUT THE COMPANY
The Company is a holding company which is forming a Telecommunications Group and currently owns an Automotive Group with three (3) active subsidiaries: The Harvey Westbury Corporation Inc., Hardyston Distributors, Inc. and CT Industries, Inc. Harvey Westbury assembles and packages automotive accessories under the name, Easy Test, sells engine treatment under the name, Formula 2000 Ultimate and sells waxes and polishes under the name, Garry's Royal Satin to the automotive, marine, and aviation industries. Hardyston Distributors, Inc. is a specialty distributor of automotive parts and accessories to local mechanics, service stations and dealers. CT Industries, Inc. has been designated to house any future internet-related business and currently handles the internet-related sales from the company's websites as well as other retail programs.