STUART, Fla., Feb. 24 /PRNewswire/ -- Regency Affiliates, Inc.
(OTC Bulletin Board: RAFF), a diversified, multi-national company announced
that it is well along with its due diligence after signing a Letter of Intent
to acquire Valley Wholesale Supply Corp., a California based marketer of
picture molding, framing supplies and equipment. The Company has
approximately 5,000 active accounts including the Walt Disney Company and the
County of Los Angeles. Valley was formed in 1967 by its current owners and is
believed to be the largest company of its type in California with new sales
records reached in each of the last 5 years. The terms of the acquisition
call for Regency to pay cash, convertible stock and an earnout on a basis that
will be antidilutive to Regency. The principal owners have agreed to stay on
to run the operations for 4 years.
Regency Affiliates owns Rustic Crafts International located in Scranton,
Pa. Rustic Crafts is the largest manufacture of decorative fireplaces in the
United States and Regency is actively searching for companies whose products
enhance its existing lines such as pictures, clocks and other items to be
displayed on or around its fireplaces. Rustic Crafts markets its products in
furniture stores, independent fireplace stores and through the JC Penney Co.
Valley Wholesale Supply Corp. complements the Southwest Mill and Lumber
Company which is also under a Letter of Intent for acquisition by Regency.
Together they represent sales in excess of $13,500,000 and pretax income of
approximately $850,000 which will triple the size of the home accessory
division of Regency.
Regency's long term business plan calls for it to focus on consumer based
high technology companies such as the recently announced fiber optic
telecommunication company, Knight Enterprises, balanced with accessory
companies for the home and auto market.
Regency's largest shareholder with 26.1% is Glas-Aire Industries Group,
LTD. . Glas-Aire's largest shareholder is Regency Affiliates, Inc. with
50.2%. They have certain common Directors. Mr. Ponsoldt is Chairman of both
companies. Regency also owns a 95% interest in the Security West Partnership,
which in turn owns the Security West Building leased to the United States and
occupied by the United States Social Security Administration office of
Disability and International Operations. The building houses approximately
Certain statements and information included in this release constitute
"forward-looking statements" within the meaning of the Federal Private
Securities Litigation Reform Act of 1995. Such forward-looking statements
involve known and unknown risks, uncertainties and other factors which may
cause the actual results, performance or achievements of the Company to be
materially different from any future results, performance or achievements
expressed or implied in such forward-looking statements. Additional
discussions of factors that could cause actual results to differ materially
from management's projections, forecasts, estimates and expectations is
contained in the Company's SEC Filings.
For further information please visit the following websites:
CONTACT: William R Ponsoldt, President of Regency Affiliates, Inc.,
729 So. Federal Hwy, Ste 307, Stuart, Florida 34994, Tel. 561-220-7662, or
SOURCE Regency Affiliates, Inc.