Crown Group, Inc. Sells 50% Stake in Precision IBC Subsidiary
7 November 2000
Crown Group, Inc. Sells 50% Stake in Precision IBC Subsidiary
DALLAS--Nov. 7, 2000--Crown Group, Inc. today announced that it has sold 50% of the stock of its wholly owned subsidiary, Precision IBC, Inc., to Van P. Finger, the Founder and President of Precision IBC.Consideration for the 50% interest included $2,229,468 in cash and the retirement of 170,170 shares of Crown Group common stock owned by Mr. Finger, valued at $833,333.
Precision IBC, which is based in Fairhope, Alabama, sells, rents, and services intermediate bulk containers and accounted for approximately 3.0% of Crown's revenues in the fiscal year ended April 30, 2000. Under the terms of the sale, Mr. Finger will remain President of the subsidiary, and the ownership change will have no effect on daily operations.
"This transaction is consistent with Crown's strategy of focusing upon its automotive retailing and specialty finance businesses," commented Edward R. McMurphy, President and Chief Executive Officer of Crown Group, Inc. "Precision has consistently generated strong cash flows throughout Crown's period of ownership, and we expect the subsidiary to continue growing and contributing to Crown's earnings in the future."
Crown Group, Inc. is primarily engaged in automotive retailing and specialty finance. Historically, the Company has made equity investments for long-term appreciation in companies spanning various industries through either controlling ownership of high-growth companies or, in some cases, minority positions. The Company currently owns (i) 99% of America's Car-Mart, Inc. and 70% of Smart Choice Automotive Group, Inc. (OTCBB: SCHA), vertically integrated used car sales and finance companies; (ii) 80% of Concorde Acceptance Corporation, a sub-prime mortgage lender; (iii) 50% of Precision IBC, Inc., a firm specializing in the sale and rental of intermediate bulk containers; (iv) 90% of CG Incorporated S.A. de C.V., which owns and operates two casinos in El Salvador; (v) 8.8% of Mariah Vision3, Inc., a software developer specializing in 3-D graphic design; and (vi) 6.7% of Monarch Venture Partners Fund I, a venture capital fund focused on internet-related and emerging technology companies. Crown Group is headquartered in Dallas, Texas, and its common stock is traded on the Nasdaq National Market under the symbol "CNGR".
This press release includes statements that may constitute "forward-looking" statements, usually containing the words "believe," "estimate," "project," "expect," or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those relating to the development of the Company's businesses, risks associated with acquisitions, continued availability of lines of credit for the Company's businesses, changes in interest rates, changes in the industries in which the Company operates, competition, dependence on existing management, and other risks which are discussed in the Company's periodic filings with the Securities and Exchange Commission. All forward-looking statements in this release are based upon historical information available as of the date of this release. Such historical information may change or become invalid after the date of this release, and by making these forward-looking statements, Crown Group undertakes no obligation to update these statements for revisions or changes after the date of this release.