FENTON, Mich., Apr 06, 2005 (BUSINESS WIRE) -- ZANN Corp. (ZANC, Trade) announced today that ZANN Corp (Zann) and Sartam Industries, Inc. (Sartam) have signed a Letter of Intent (LOI) for the purpose of Zann acquiring Sartam. Sartam has a semi-automatic riveting system which can run at more than one rivet/second with a skilled operator.
According to Robert C. Simpson - CEO, "We believe this is the most advanced semi-automatic riveting system in the world. Our preliminary sales goal for the first 24 months is for 1,000 tools at greater than $1,500.00 and 6,300,000 magazines at greater than $3.00, for a combined total of approximately $20,250,000. These figures represent less than 1% of the US market share for rivet guns."
Simpson went on to say, "This system represents superior quality and labor savings of more than 40% in many cases. The tools weigh less than 4 pounds and are portable. Zann and Sartam complement each other perfectly, and will create unique synergies for both companies. Many of our team members, including me, cut their teeth in the manufacturing-automation business. A definitive agreement providing for the acquisition of Sartam is being written with the LOI as a guideline. Our objective is to complete the financial audit during the 3rd Quarter 2005, and acquire Sartam shortly thereafter."
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