LDTI Leisure Direct Initiates Acquisition Strategy and Signs Letter of Intent to Acquire Spa Manufacturer
Market Wire - December 12, 2006 9:08 AM (EDT)
PERRYSBURG, OH -- (MARKET WIRE) -- Dec 12, 2006 -- Leisure Direct, Inc. (OTCBB: LDTI) announced today that it has initiated its acquisition strategy and has signed a Letter of Intent to purchase a profitable manufacturer of spas and other products. John R. Ayling, LDTI's Chairman and CEO, stated, "This acquisition represents one giant step forward in implementing our growth strategy of acquiring and integrating profitable companies in our industry, and will substantially increase our revenue base and EBITDA. The earnings from the acquisition will be immediately accretive."
The company to be acquired is a well-established manufacturer with annual revenue of approximately $10.5 million and EBITDA of about $1.26 million. The company sells its spas through company-owned stores and an established dealer network. The purchase price of the company will be less than five times earnings and well under one times revenue. Mr. Ayling further stated, "This acquisition is the first of many and will help enable us to become a major player in the pool, spa and backyard leisure industry. The company will release additional information regarding the acquisition as things progress."
It is the mission of LDTI to become the premier, highest quality and most nationally recognized manufacturer and direct marketer of pool, spa/hot tub, and patio products in the United States. LDTI intends to implement its strategy by acquiring existing manufacturers of backyard entertainment products and building a direct marketing distribution network.
This release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 27E of the Securities Act of 1934. Statements contained in this release that are not historical facts may be deemed to be forward-looking statements. Investors are cautioned that forward-looking statements are inherently uncertain. Actual performance and results may differ materially from that projected or suggested herein due to certain risks and uncertainties including, without limitation, ability to obtain financing and regulatory and shareholder approvals for anticipated actions.
Contact:
John R. Ayling
Chairman and CEO
Leisure Direct, Inc.
(419) 873-1111
1070 Commerce Drive, Building II - Suite 303
Perrysburg, OH 43551
www.leisuredirectinc.com
