SOMERSET, N.J., Dec. 11 /PRNewswire-FirstCall/ -- Somerset-based AWT, Inc. today announced that it has agreed to sale terms of its first acquisition target. The transaction includes a cash payment upon transfer of ownership.
The company said it will finance the deal with cash-on-hand.
AWT expects to accept final transfer of ownership of the company at the beginning of 2008. The deal “will provide AWT with a solid footing for 2008 and a cash flow positive asset to continue to build upon,” Christopher J. Neill, chief executive officer of the company, said in a statement.
The healthcare supplier projects this asset should grow to approximately $700,000 in revenue and $266,000 for income in 2008. “The owner has been running his business for nearly 20 years and is now retiring. We wish him well. The overall operation we are acquiring has been small for many years, but we plan to change that. With our revenue model in place the purchasing efficiency alone will substantially increase our overall income margins,” stated Neill.
Under the agreements, both companies are unable to speak directly regarding the specific terms prior to the closing of the acquisition.
ABOUT AWT, INC.
AWT Inc, headquartered in Somerset, New Jersey, with locations in the USA and Saudi Arabia, is a rapidly expanding durable medical equipment and supply company. It distributes state-of-the-art medical equipment to the healthcare industry, as well as general supplies.
AWT Inc is committed to a more traditional personal service commitment to healthcare and cost efficiencies for clients, providing superior service and products to the healthcare world at the lowest possible price and with delivery times superior to any in the industry. It is equally committed to always exceeding customer expectations and to increasing shareholder value.
Disclaimer:
CAUTIONARY STATEMENT ABOUT FORWARD-LOOKING STATEMENTS
The stated terms for the acquisition described in this press release have not been completed for AWTM at the time of writing. It is the intention of AWTM to work with target on an open and direct basis to receive the best value for the asset contemplated and to complete any additional financings contemplated on a best efforts basis and at its earliest possible opportunity. If the acquisition is not completed or any potential financing is not completed, no assurances as to the financial viability of the company can be given. No guarantee can be made by the company as to if the acquisition or potential financing mentioned herein will actually take place and close. If the acquisition and or financing does not close where AWTM has not received assets and or monies for future growth, actual results could differ materially from those projected in the forward-looking statements. This press release contains “forward-looking statements,” which are statements related to future, not past, events. In this context, the forward-looking statements often include statements regarding our goals, plans, projections and guidance regarding our financial position, results of operations, market position, pending and potential future acquisitions and business strategy, and often contain words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks” or “will.” Any such forward-looking statements are not assurances of future performance and involve risks and uncertainties that may cause results to differ materially from those set forth in the statements. These risks and uncertainties include, among other things, (a) general economic and business conditions, (b) the level of strategic partner incentives, (c) the future regulatory environment, (d) our cost of financing, (e) our ability to complete acquisitions and dispositions and the risks associated therewith, and (f) our ability to retain key personnel. These factors, as well as additional factors, could affect our forward-looking statements. We urge you to carefully consider this information. We undertake no duty to update our forward-looking statements, including our earnings outlook.
CONTACT: Christopher J. Neill of AWT, Inc. +1-732-246-2330
Web site: http://www.awtmid.com/
