I know this stock is over .10, but I posted this message on the over .10 AND the Hot Stocks threads on Friday when I hear this news on the radio - but NO ONE has replied:
HUGE news today. I heard it on a stock talk show driving home. Coach Industries (I used to own one of their limo's) signed letter of intent to aquire a $160 million company -and is going on AMEX in the fall. Vol. is only about 100,000 and pps is in $1.40's.
Anyone know this stock well and have any opinions? TIA
Here's the news:
Coach Industries Group Announces the Signing of a Letter of Intent to Acquire 160 Million Dollar Corporate Development Services, Inc.
FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--08/06/2004--Coach Industries Group, Inc. (OTCBB:CIGI) ("Coach"), a holding company which, through its subsidiaries, provides financial services and products related to the transportation industry, announced today the signing of a letter of intent to acquire Corporate Development Services, Inc. and its affiliated companies (collectively referred to as "CDS"). CDS, founded in 2001, based in New York provides contract labor, insurance products and management services to the transportation industry throughout the United States. CDS' annual revenues for 2003 were approximately $160 million.
Under the terms of the agreement, Coach will acquire CDS for a combination of consideration, including stock and cash. The final terms of the agreement are contingent upon various factors, including the completion of due diligence. The acquisition is anticipated to close during the third quarter, and will be immediately accretive to Coach.
Mr. Francis O'Donnell, Chief Executive Officer of Coach stated, "This acquisition is key to our long-term strategy to offer our financial services to existing customers and significantly expand our customer base. The acquisition of CDS is part of Coach's strategy to grow rapidly, both through internal measures as well as through acquisitions. CDS provides approximately 5,000 drivers to the transportation industry. The CDS business model targeting the delivery industry should easily translate to our existing customer base of limousine operators and allow Coach to expand into other industries requiring contract labor."
Mr. John Gore, recently appointed President of Coach Financial Services, Inc., a wholly owned subsidiary of Coach ("CFS") commented, "We believe this base of drivers provides CFS with 5,000 additional opportunities to purchase vehicles through our strategic alliance with the Ford Motor Company and General Motors Corporation, lease these vehicles and provide insurance products to the drivers. CDS has a successful business solution and product-line, as well as a loyal customer base, two of the important qualities we look for when evaluating acquisition candidates. Additionally, the management team has created a dynamic organization supported by an extremely talented group of professionals. This strong management team will remain in place, and continue to focus on providing the products and services that have made the organization successful."
Mr. Gore also commented that, "in addition to the $160 million existing revenue stream, the combination of CDS and Coach provides a phenomenal opportunity to increase our lease portfolio balances by between $40 million and $80 million, in a very short period of time."
Important disclosure: There can be no assurances that; 1) a definitive agreement will be reached between Coach and CDS or that the planned acquisition will close; 2) that the existing revenue stream of CDS can be maintained: or, 3) that Coach will achieve any increase in its vehicle lease portfolio business as a result of this acquisition.
About Coach Industries Group, Inc.
Coach Industries Group, Inc. is a holding company focused on manufacturing luxury limousine and specialty vehicles. Its two wholly-owned subsidiaries, Springfield Coach Industries Corporation, Inc. ("Springfield") (http://www.limoland.com) and Commercial Transportation Manufacturing Corporation ("CTMC") are among the largest limousine manufacturing companies in the United States.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The Statements which are not historical facts contained in this press release are forward-looking statements that involve certain risks and uncertainties including but not limited to risks associated with the uncertainty of future financial results, additional financing requirements, development of new products, government approval processes, the impact of competitive products or pricing, technological changes, the effect of economic conditions and other uncertainties detailed in the Company's filings with the Securities and Exchange Commission.
CONTACT:For Coach Industries Group, Inc., Coral Springs, Fla. The Del Mar Consulting Group, Inc. Investor Contact: Robert B. Prag, 858-794-9500 firstname.lastname@example.org
SOURCE: Coach Industries Group, Inc.
08/06/2004 08:05 EASTERN
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