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LEICESTER, N.Y., Aug. 6 -- CPAC, Inc.
management detailed its acquisition and growth strategies at the company's seventeenth
annual shareholders' meeting held August 5th in Mt. Morris, NY.
President and Chief Executive Officer, Thomas N. Hendrickson, told those in attendance,
"We have stated that CPAC will be a $200 million company in the year 2000. That
objective will only be achieved through an aggressive acquisitions program. We have
clearly positioned CPAC as an acquirer, developer, and licensee of brand names. CPAC
possesses the management and manufacturing expertise to profitably integrate acquisitions
as demonstrated in the recent past. We have identified the cleaning and personal
care(Fuller Brands) market as our target to further utilize manufacturing capacity at our
world class Fuller Brush facility. To fulfill this aggressive goal, we have recently
established a corporate acquisitions team, and hired a senior manager to focus on
acquisitions."
In addition to acquisitions, the Company is pursuing cost reduction and top-line growth
opportunities across all its lines of business. "We will generate $1.5 million in
annual savings with the completion of the consolidation of manufacturing for our Cleaning
Technologies Group at our Great Bend, Kansas facility starting in the third quarter,"
said Mr. Hendrickson. "Top-line growth will also be driven by the introduction of new
products, national accounts, and expanded private-label agreements. For instance, a new
line of skin care products will soon be introduced for our Stanley Home Products
representatives, as well as many new commercial/janitorial cleaning products for Cleaning
Technologies Group. We have also recently signed agreements to supply cleaning products to
two national players in the food service and facilities management industries."
Commenting on the Imaging segment, Mr. Hendrickson said, "We are committed to
playing a major role in the imaging market well into the next century, primarily through
the introduction of products and international expansion. We will capitalize on our new
TriPhase (one-part) chemical technology, which provides cost and mixing advantages to
customers. In developing countries -- particularly in the former USSR and Asia -- our
chemical and environmental equipment business has grown tremendously. As a result, we will
soon break ground for a new imaging chemical facility in Thailand to accommodate the
growing business in the Pacific Rim. In addition, we have completed a major expansion of
our Belgian plant, and opened CPAC Africa to package chemical products for sub-Sahara
customers."
Mr. Hendrickson concluded, "CPAC is positioned to become a $200 million company in
the year 2000. Acquisitions are the key to realizing this goal, and we intend to make at
least one strategic acquisition this year to merge into our Fuller Brands business.
Internal growth will be driven by new product introductions, our value-added capabilities,
serving niche markets with unique products, and solving customers' cost and environmental
problems.
In addition, we believe that national accounts, joint ventures, and private-label
manufacturing agreements in both our business segments will be crucial to internal growth.
We are also evaluating all alternatives relative to reducing costs and increasing
efficiencies across all our businesses."
CPAC also announced that all management proposals were passed by shareholders.
Founded in 1969, CPAC, Inc. owns The Fuller Brush Company in Great Bend, Kansas, as
well as four imaging chemical facilities in the U.S. and Europe. CPAC has over 250
registered trademarks for chemical and non-chemical products in the cleaning and personal
care industry and imaging market. Shares are traded over the Nasdaq National Market System
under the ticker symbol "CPAK." Additional information is available on the
Company's website (http://www.cpac-fuller.com).
Except for the historical matters contained herein, statements in this press release
are forward-looking and are made pursuant to the safe harbor provisions of the Securities
Litigation Reform Act of 1995. Investors are cautioned that forward-looking statements
involve risks and uncertainties which may affect CPAC's business and prospects, including
economic, competitive, governmental, technological and other factors discussed in CPAC's
filing with the Securities and Exchange Commission.
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