Veltex acquires Canadian manufacturing & distribution company
08 Jun '05
2 min read
Leading manufacturing, import and distribution company for apparel and accessories Veltex Corporation, announced that it had completed an acquisition of the promotional products division of a very successful Canadian manufacturing and distribution company.
The company has exceptional license agreements, like Tommy Hilfiger, in place and manufactures and distributes high quality, brand name promotional products, such as baseball caps, polo shirts, and shoes.
This acquisition, with over 80 Canadian employees, will be renamed Veltex Canada and continue operations at its existing location of 10 Konrad Crescent, Markham, ON, L3R 9T5. Importantly, this acquisition was consummated for cash and very little stock dilution.
Total outstanding shares for Veltex are now approximately 10 million and the Company anticipates total net income to
exceed $12 million in 2005.
The Promotional Products industry represents a $1 billion marketing industry in Canada with over 4000 distributors. This acquisition is projected to contribute an additional $7,000,000 to Veltex's 2005 revenues with about $1.2 million more to their net bottom line.
Veltex forecasts that 2005 net earnings will easily exceed $1.00 per share. Furthermore, Veltex's client and distributor base, as well as market penetration in North America, will dramatically increase.
Javeed Matin, CEO of Veltex Corporation, stated, "This acquisition is another important milestone in our overall plans to become one of the world's leading, vertically-integrated companies in the manufacturing and distribution of high quality, competitively-priced apparel and accessories. We greatly appreciate all of our loyal shareholders and will always continue to work diligently to maximize share valuations through strong revenue and earnings growth."
marketing@alchempro.com
