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. catalog. 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 4,000 employees. 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: www.regencyaffiliates.com www.rusticcrafts.com www.glasaire.com CONTACT: William R Ponsoldt, President of Regency Affiliates, Inc., 729 So. Federal Hwy, Ste 307, Stuart, Florida 34994, Tel. 561-220-7662, or Fax. 561-220-2974
SOURCE Regency Affiliates, Inc.