Stonepath (AMEX:STG)
Historical Stock Chart
From Jul 2019 to Jul 2024
Stonepath Group to Acquire Majority Stake in Leading Shanghai-Based Logistics
Business
Stonepath Logistics Expands International Network in Greater China
PHILADELPHIA, Nov. 12 /Xinhua-PRNewswire/ -- Stonepath Group (AMEX:STG), a
global logistics services organization, has signed a definitive agreement to
acquire a majority interest in Shanghai-based Shaanxi Sunshine Express Int'l
Co., Ltd. (Shaanxi).
Established in 1993, the business is one of the leading integrated logistics
companies in the PRC, providing a wide-range of customized transportation and
logistics services and supply chain solutions including global freight
forwarding, warehousing and distribution, shipping services and special freight
handling. Once completed, the acquisition will facilitate Stonepath's expansion
into the vital greater China region where many of Stonepath's clients have
significant supplier relationships and where extraordinary economic growth is
driving demand for logistics services. Shaanxi reported revenues in excess of
$50 million for 2002.
In consideration of the acquisition of a 55% interest in Shaanxi, the
transaction is valued at up to $11 million, consisting of cash of $3.5 million
and stock of $2.0 million at closing, and a five year earn-out arrangement based
upon the future financial performance of Shaanxi. As additional purchase price,
on a post closing basis the Company has agreed to pay Shaanxi for its closing
date working capital.
Stonepath's Chairman of the Board and CEO, Dennis Pelino, remarked, 'Shaanxi is
one of the strongest and best known logistics companies in Greater China,
consistently ranked as one of the top 10 providers in the region. As an
'A-Class' international forwarder with a strong executive team, we will be
gaining a superb partner that will add an important geographic region to our
international network and will provide a solid foundation for the growth of our
company throughout Greater China.'
Pelino continued, 'China's economy is surging. U.S. corporations continue
outsourcing more of their manufacturing to the region and China's extraordinary
internal growth is creating a huge demand for raw materials needed to build
infrastructure, supply manufacturing sectors and satisfy a growing consumer
market. Shaanxi will establish Stonepath as a leading transportation provider
positioned to take advantage of these trends.'
Andy Tsai, President and founder of Shaanxi, commented, 'Joining Stonepath is a
very positive development for the customers, employees and partners of Shaanxi.
We're looking forward to the numerous opportunities that this partnership will
bring to our business and we are confident that Shaanxi will add a great deal of
value to the Stonepath Logistics global network.'
The transaction is expected to close within 60-90 days, subject to certain
closing conditions including completion of audited financial statements and
securing of regulatory and other third-party approvals.
About Stonepath Group (AMEX:STG)
Stonepath Group ( http://www.stonepath.com ) is building a global logistics
services organization that integrates established logistics companies with
innovative technologies. Through our subsidiaries, Stonepath Logistics offers a
full-range of time-definite transportation and distribution solutions. For more
information about the Company, please contact John Brine at +1-212-254-8280.
This press release may include forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 as amended, and Section 21E of the
Securities Exchange Act of 1934. We have based these forward- looking
statements on our current expectations and projections about future events.
These forward-looking statements are subject to known and unknown risks,
uncertainties and assumptions about us and our subsidiaries, that may cause our
actual results, levels of activity, performance or achievements to be materially
different from any future results, levels of activity, performance or
achievements expressed or implied by such forward-looking statements. In some
cases, you can identify forward-looking statements by terminology such as
"may,' "will,' "should,' "could,' 'would,' "expect,' "plan,'
'anticipate,' 'believe,' 'estimate,' 'continue,' or the negative of such
terms or other similar expressions. This press release relies upon unaudited
internal financial information prepared by Shaanxi. Closing of the transaction
is contingent upon completion of audited financial statements. There can be no
assurance that the audit will not require significant adjustments to Shaanxi's
unaudited results. These adjustments could materially effect the financial
information presented. In addition, past results are not necessarily an
indication of future performance. Other factors that might cause or contribute
to such a discrepancy include, but are not limited to, those identified in our
other Securities and Exchange Commission filings, other public documents, and
recent press releases, which can be found on our corporate Web site,
http://www.stonepath.com .
DATASOURCE: Stonepath Group
CONTACT: John Brine, SVP, Marketing & Communications of Stonepath Group,
+1-212-254-8280, or fax, +1-212-254-8595, or
Web Site: http://www.stonepath.com/