FOFH - Acquisition News
ForeFront Acquires Devant Sport Towels
Tuesday January 2, 11:49 am ET
Company Continues Strategy to Add to Golf Accessory Portfolio
SPRINGFIELD, Tenn.--(BUSINESS WIRE)--ForeFront Holdings, Inc. (OTCBB: FOFH - News) announced today the acquisition of Devant Ltd., the leading supplier of custom sport towels for the golf market. The acquisition occurred on December 20, 2006 with an effective date of December 3, 2006 for a purchase price of $4.6 million. Devant revenues for the year ending 2005 were $8.3 million, including the revenues of Sir Christopher Hatton Inc., which was purchased by Devant in January 2006.
Devant, based in Monroe, N.C., is the golf industry's leading supplier of custom towels. In January 2006, Devant acquired Sir Christopher Hatton, Inc., creating the industry's largest Jacquard woven towel producer. Devant is also recognized as the biggest overall manufacturer of Image dyed and Embroidered golf and resort beach towels.
"The growth strategy of ForeFront is based on acquiring, licensing and developing the best accessory brands in the golf market," said Michael Hedge, president and chief executive officer. "Devant was a perfect fit for us as we continue to position ForeFront's accessory portfolio to be of greater value to our customers. For many years, the golf industry has valued the quality of the Devant and Sir Christopher Hatton brands and having them under the ForeFront umbrella will further enhance our relationships with the golf retail market. With our sales, decorating, and distribution expertise, we anticipate expanding Devant's proprietary towel technology into other markets besides golf."
Devant will continue to operate in its current location under the leadership of Rick Sheppard, president. The company, which has 45 full time employees and 93 independent sales representatives, currently owns more golf towel patents than any other golf accessory supplier and has a long history of golf towel innovation.
"We are excited to join the ForeFront family," said Sheppard. "This partnership provides the long-term financial strength we need to develop new products and continue to expand our channels of distribution in the golf industry and beyond."
In addition to Devant Sport Towels, ForeFront Holdings owns the Burton Golf, Datrek, Miller Golf and Sir Christopher Hatton brands. The company also has licensing and/or distribution agreements with the NCAA, NFL/Wilson Sporting Goods, PGA TOUR, Champions Tour, LPGA, Nationwide Tour, Ryder Cup, Suunto, Top of the World Headwear and Rob Akins Golf.
About ForeFront
ForeFront Holdings, Inc (OTCBB: FOFH - News), formerly Datrek Miller International, is a leading supplier of golf accessory products and services. The company and its subsidiaries have been designing, manufacturing, and marketing premium quality golf accessory products since 1907. ForeFront owns the Burton Golf, Datrek, Devant Sport Towels, Miller Golf and Sir Christopher Hatton brands and has licensing and/or distribution agreements with the NCAA, NFL/Wilson Sporting Goods, PGA TOUR, Champions Tour, LPGA, Nationwide Tour, Ryder Cup, Suunto, Top of the World Headwear and Rob Akins Golf. ForeFront services over 10,000 points of sale through multiple distribution channels offering a wide selection of products and value-added services. More information and a complete product catalog can be found at www.forefrontgolf.com.
Devant Sport Towels
Devant Sport Towels was founded more than 32 years ago as a company dedicated to producing high quality golf towels, emphasizing low minimums while giving outstanding value and quick service. Based in Monroe, NC, the company has a state-of-the-art manufacturing facility where the company manufactures its products using leading edge technology. Devant is the leading brand in the golf towel market. More information can be found at www.devantltd.com
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934 that are based upon current expectations or beliefs, as well as a number of assumptions about future events. Although the Company believes that the expectations reflected in the forward-looking statements and the assumptions upon which they are based are reasonable, it can give no assurance that such expectations and assumptions will prove to have been correct. The reader is cautioned not to put undue reliance on these forward-looking statements, as these statements are subject to numerous factors and uncertainties, including without limitation, our success in integrating the operations of any newly-acquired businesses, and associated reduction in costs, a significant deficiency in certain of our internal controls which may not be promptly corrected, strategic acquisitions, continued and increased demand for our products, general economic conditions, the successful negotiation of potential acquisitions, successful implementation of our business strategy and competition, any of which may cause actual results to differ materially from those described in the statements. In addition, other factors that could cause actual results to differ materially are discussed in our most recent Form 10-QSB and Form 10-KSB filings with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, our actual results could differ materially from those anticipated in these forward-looking statements. We undertake no obligation and do not intend to update, revise or otherwise publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of any unanticipated events. Although we believe that our expectations are based on reasonable assumptions, we can give no assurance that our expectations will materialize. Many factors could cause actual results to differ materially from our forward-looking statements.
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