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| FOR IMMEDIATE RELEASE | |||||||||
| Source: U.S. Dry Cleaning Corporation | |||||||||
U.S. Dry Cleaning Corporation's Aggressive Acquisition Strategy and Recent Successes Highlight New Investor Fact Sheet |
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PALM SPRINGS, CA--(MARKET WIRE)--Sep 17, 2007 -- |
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The Fact Sheet describes the Company's strategy to acquire profitable dry cleaning companies that are Number 1 in their markets and generating more than $5 million in annual revenues. Earlier this week, U.S. Dry Cleaning announced a purchase agreement to acquire the market-leading dry cleaning business in California's Central Valley, comprising 18 stores in and around Fresno and 2 stores in Arizona. This will be the fourth strategic acquisition the Company has made and would increase the Company's existing $10 million annualized run rate by an approximately $6.5 million. "This Investor Fact Sheet places that acquisition agreement in the context of our full strategic business plan," said Robert Y. Lee, CEO of U.S. Dry Cleaning. "Our management team is highly experienced in retail consolidation, and we believe that the 'first mover' consolidating any market is able to acquire market-leading businesses at the most favorable prices, ahead of potential competition. We believe it is the early stage of consolidation that reaps the greatest financial rewards for all parties." Revenues for the dry cleaning market in the United States are estimated at $9 billion annually. The industry is very stable but highly fragmented. About 85 percent of the businesses are small "mom and pop" operations or larger family-owned chains, typically operating for at least two generations. "For the most successful of these businesses, joining a national consolidation effort provides the next step for their growth," Mr. Lee noted. "It adds economies of scale by reducing back-office and administrative duplication, gives them access to Best Practices in the industry and provides financing that is not easily available to smaller companies. All our candidates for acquisition have committed to increasing same store sales by 5 percent each year. They believe this is possible because of the increased level of quality and expanded services they will be able to provide." Mr. Lee added, "Through this Fact Sheet, potential investors can quickly grasp our business and acquisitions strategies, the scope of the market and industry trends, and the opportunity for financial reward. Of course, potential investors are urged to carefully review U.S. Dry Cleaning's public SEC filings and other information before making an investment decision." To view and download the U.S. Dry Cleaning Fact Sheet, please visit www.cfsg1.com and click on the Company logo. Or go to www.usdrycleaning.com and click on Investor Relations. |
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About U.S. Dry Cleaning Corporation U.S. Dry Cleaning Corporation’s mission is to create the premier national chain in the dry cleaning industry. Over the last year and half, U.S. Dry Cleaning has completed acquisitions with combined annual revenues of over $9 million. U.S. Dry Cleaning combines a management team with extensive experience in retail consolidations and premier dry cleaning operations, with a proven operating model. U.S. Dry Cleaning intends to rapidly acquire profitable, positive cash flow operations at accretive valuations. Each acquisition target is expected to be self-sufficient and senior management is expected to remain in place to ease the assimilation. U.S. Dry Cleaning is focused on acquiring profitable businesses that hold a leading share in their individual markets. U.S. Dry Cleaning management believes that the current absence of extensive competition to acquire the larger dominant operators will change radically as the industry consolidates. Management believes that the greatest value achieved in any consolidation occurs during the earliest phases and intends to grow as rapidly as possible to deliver shareholder value. |
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| This release is provided for informational purposes only and should not be construed as a solicitation to invest. U.S. Dry Cleaning Corporation’s future operation results are dependent upon many factors, including but not limited to: (i) U.S. Dry Cleaning’s ability to obtain sufficient capital or a strategic business arrangement to fund its expansion plans; (ii) U.S. Dry Cleaning’s ability to build the management and human resources and infrastructure necessary to support the growth of its business; (iii) competitive factors and developments beyond U.S. Dry Cleaning’s control; and (iv) other risk factors discussed in U.S. Dry Cleaning’s periodic filings with the Securities and Exchange Commission, which are available for review at http://www/sec/gov/ under “Search for Company Filings.” In accordance with a December 5, 2006 agreement, Consulting For Strategic Growth 1, Ltd. ("CFSG1") provides U.S. Dry Cleaning Corporation with consulting, business advisory, investor relations, public relations and corporate development services. CFSG1 receives only restricted stock as compensation from U.S. Dry Cleaning. CFSG1 may also choose to purchase U.S. Dry Cleaning’s common stock and thereafter liquidate those securities at any time it deems appropriate to do so. For more information please visit www.cfsg1.com. |
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