|
LEICESTER, NY, September 14, 1999 -- CPAC, Inc. (Nasdaq: CPAK) today reported that
it has substantially completed the reorganization of Cleaning Technologies Group (CTG),
its commercial/janitorial cleaning division. The Company announced its intention to
reorganize CTG at its annual shareholders’ meeting on August 11, 1999.
Mr. Robert C. Isaacs, CPAC Chief Operating Officer said that the reorganization
included expense reduction, development of alternative distribution channels, and a
realignment of the sales force. Commenting on the reasons behind the reorganization, Mr.
Isaacs said, "Following the acquisition of CTG in July 1997, we integrated the
cleaning chemicals manufacturing into our Fuller Brush facility in Great Bend, Kansas.
However, due to difficulties with the consolidation, the cost savings we anticipated were
not realized within the projected time frame. As a result, we are focusing with intensity
on achieving the synergy value we recognized at acquisition through accelerated cost
reduction and selected revenue growth opportunities." According to Mr. Isaacs, the
reorganization has resulted in the elimination of over $1,000,000 on an annualized basis
of excess costs. In particular, the Company said it has cut sales and marketing expenses
to bring these costs in line with revenues.
CPAC, Inc. is a specialty chemical manufacturer operating in two business segments: Cleaning and
Personal Care, under its brand name The Fuller Brush Company, and Imaging, with its trademarks
Trebla and Allied chemicals. CPAC Inc. shares are traded over the NASDAQ National Market System
under the ticker symbol, ‘CPAK’.
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 filings with the Securities and
Exchange Commission.
###
|
