Home Solutions Closes $12 Million Florida Acquisition
February 09 2004 - 8:15AM
PR Newswire (US)
Home Solutions Closes $12 Million Florida Acquisition Acquisition
Expected to be Accretive to 2004 EPS and to Nearly Double Revenues
HOUSTON, Feb. 9 /PRNewswire-FirstCall/ -- Home Solutions of
America, Inc. , a niche provider of specialty residential services,
announced today that it has closed the acquisition of Southern
Exposure and related companies. Southern Exposure, based in
Florida, has over seven years of experience providing specialty
installation services, including cabinets and countertops, to
homeowners throughout southwest Florida. Last year it generated
un-audited results of approximately $12.0 million in revenue and
$2.6 million in cash flow. The $10.4 million purchase price
includes $2.0 million in cash, $5.9 million in sellernotes, and
$2.5 million in common stock of Home Solutions. This acquisition is
expected to be accretive to 2004 EPS. "This significant and
strategic acquisition will approximately double Home Solutions'
revenue and, more importantly, triple its annual cash flow," said
Frank Fradella, Chairman and CEO of Home Solutions. "Southern
Exposure marks our Company's entry into the Florida marketplace and
provides a strong infrastructure from which to grow. With this
acquisition, Home Solutions is on a runrate to generate un-audited
results of approximately $30.0 million in annual revenue and $4.5
million in cash flow. Dale Mars, Southern Exposure's President, has
built an excellent business with an extremely qualified workforce.
We are encouraged about the future prospects of this business and
look forward to growing our businesses together." "Home Solutions
is ideally positioned to take advantage of the huge growth
potential in the southwestern Florida market," said Dale Mars,
President of Southern Exposure. "Leading the country in many
demographic trends, this marketplace can generate solid additional
revenue and cash flow. Partnering with Home Solutions will allow us
to significantly expand our business, taking advantage of available
opportunities." Home Solutions is a niche provider of specialty
residential services including Restoration Services and Cleaning
and Fabric Protection Services. The Company has operations in the
California, Texas and Florida markets and is rapidly growing its
core business through both an internal and an acquisition strategy.
For more information on Home Solutions, please see our website at
http://www.homcorp.com/. Statements included in this update that
are not historical in nature are intended to be, and are hereby
identified as, "forward-looking statements" for purposes of the
safe harbor provided by Section 21E of the Securities Exchange Act
of 1934, as amended by Public Law 104-67. Forward-looking
statements may be identified by words including "anticipate,"
"believe," "intends," "estimates," "expect," and similar
expressions. The Company cautions readers that forward-looking
statements including, without limitation, those relating to the
Company's future business prospects are subject to certain risks
and uncertainties that could cause actual results to differ
materially from those indicated in the forward-looking statements,
due to factors such as those relating to economic, governmental,
technological, and other risks and factors identified from time to
time in the Company's reports filed with the SEC. HOME SOLUTIONS OF
AMERICA, INC CONTACT: Cormac Glynn, CEOcast, Inc. PHONE:
212-732-4300 DATASOURCE: Home Solutions of America, Inc. CONTACT:
Cormac Glynn of CEOcast, Inc., +1-212-732-4300 for Home Solutions
of America, Inc. Web site: http://www.hsoacorp.com/
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