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February 9, 2000….CPAC, Inc. (Nasdaq NNM: CPAK) today announced that its Board of
Directors authorized the repurchase of up to 295,000 shares, or 5%, of its outstanding
common stock. The purchases are to be made from time to time in the open market or through
privately-negotiated transactions, when conditions warrant.
"Although we are stepping up our investor relations activities in an attempt to
help the investment community better understand our two business segments and the
potential for growth, we are convinced that the market has not fully valued these
businesses," Thomas N. Hendrickson, CPAC Chief Executive Officer, said. "At
prices of $7.50 – 8.00, CPAC stock is clearly trading below its book value of $8.60
per share. As a result, we will continue to purchase shares through our newly authorized
stock repurchase plan, consistent with Nasdaq and SEC policies, up to the maximum approved
number of shares."
The shares will be repurchased and retired using the Company’s strong internally
generated cash flow. Mr. Hendrickson reiterated that the share buyback program does not
alter CPAC's strategy of growth via acquisitions, or prevent the Company from investing in
other attractive growth opportunities.
CPAC, Inc. is a leading international manufacturer and marketer of industrial and
household cleaning products and related accessories, personal care products, and
prepackaged chemical formulations, supplies, and equipment systems to the imaging
industry. The company operates in two business segments: Cleaning and Personal Care
(Fuller Brands) and Imaging. The Fuller Brands segment includes The Fuller Brush Company
(commercial and consumer), Stanley Home Products, and Cleaning Technologies Group.
CPAC’s Imaging segment serves the global Imaging market and includes Trebla Chemical
Company, Allied Diagnostic Imaging Resources, Inc., CPAC Equipment Division, and four
international chemical manufacturing operations. CPAC, Inc. shares trade on 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.
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