Consumers Financial Announces $6 Million Acquisition
August 19 2004 - 7:00AM
PR Newswire (US)
Consumers Financial Announces $6 Million Acquisition CEDARHURST,
N.Y., Aug. 19 /PRNewswire-FirstCall/ -- Consumers Financial
Corporation (OTC Pink Sheets: CFIN) ("CFIN") announced its contract
to acquire 100% ownership of Fear & Fear, Inc., an insurance
agency with ten offices located in and around Syracuse, NY. The
purchase price is valued at $6 million. Jack Ehrenhaus, Chairman of
the Board stated, "In announcing this acquisition previously we
neglected to add that there is an eleventh office that just opened
within the past two weeks that will embody the expected 15 to 20%
growth rate that we envision for this company. The new office is
located in a heavily trafficked auto dealers' mall where literally
thousands of car buyers congregate to see vehicles and make
purchase arrangements. The referrals and easy availability of the
office makes it highly probable that heavy traffic of buyers
needing auto insurance will find their way to this new office."
Fear & Fear operates ten office locations (now eleven) and one
administrative office. The company specializes in automobile
insurance and its service area covers most of central and northern
New York state. The company currently generates approximately $3
million in earned income from premiums and has an EBITDA of 45%.
Mr. Ehrenhaus further stated, "Fear & Fear represents the first
of what we expect to be a series of acquisitions or investments
that CFIN plans to make that are consistent with the mission
statement that we recently announced. We think the management and
profit margins plus the growth potential of Fear & Fear make it
an excellent first step for the company. We previously indicated
that we anticipated that this acquisition alone could account for
at least 2 cents per share in earnings. Hopefully, that number is
already showing signs of the potential for this area of our
business. Our shareholders will be pleased to know that more
positive news in the form of acquisitions and investments should
follow shortly." Consumers Financial Corporation is a diversified
merchant banking and financial services company dedicated to
finding and assessing the value of microcap companies strategically
located in markets where significant growth in profits can be
obtained. CFIN targets companies where management is exceptional,
products are proprietary, where techniques, software or technology
provide some measure of exclusivity, and where profit margins are
above average and where these companies can benefit from CFIN's
financial assistance either through equity or credit facilities.
The company trades under the symbol CFIN and can be found on the
Over-The-Counter Pink Sheets. Safe Harbor Statement under the
Private Securities Litigation Reform Act of 1995. This press
release includes certain forward-looking statements within the
meaning of the United States Private Securities Litigation Reform
Act of 1995. These statements are based on Consumer Financial's
management's current expectations and are subject to risks and
uncertainties and changes in circumstances. All forward-looking
statements included in this press release are based upon
information available to Consumers Financial as of the date of the
press release, and it assumes no obligation to update or alter its
forward-looking statements whether as a result of new information,
future events or otherwise. Further information on the risks that
could affect Consumer Financial's results of operations is detailed
in its filings with the United States Securities and Exchange
Commission, including the Annual Report for the year ended December
31, 2003. DATASOURCE: Consumers Financial Corporation CONTACT:
Howard A. Scala, President, Wall Street Communications, Inc.,
+1-800-338-9338, for Consumers Financial Corporation
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