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Consumers Financial Announces $6 Million Acquisition
CEDARHURST, N.Y., Aug. 19 /PRNewswire-FirstCall/ -- Consumers Financial
Corporation (OTC Pink Sheets: CFIN) ("CFIN") announced its contract to acquire
100% ownership of Fear & Fear, Inc., an insurance agency with ten offices
located in and around Syracuse, NY. The purchase price is valued at $6
million.
Jack Ehrenhaus, Chairman of the Board stated, "In announcing this acquisition
previously we neglected to add that there is an eleventh office that just
opened within the past two weeks that will embody the expected 15 to 20% growth
rate that we envision for this company. The new office is located in a heavily
trafficked auto dealers' mall where literally thousands of car buyers
congregate to see vehicles and make purchase arrangements. The referrals and
easy availability of the office makes it highly probable that heavy traffic of
buyers needing auto insurance will find their way to this new office."
Fear & Fear operates ten office locations (now eleven) and one administrative
office. The company specializes in automobile insurance and its service area
covers most of central and northern New York state. The company currently
generates approximately $3 million in earned income from premiums and has an
EBITDA of 45%.
Mr. Ehrenhaus further stated, "Fear & Fear represents the first of what we
expect to be a series of acquisitions or investments that CFIN plans to make
that are consistent with the mission statement that we recently announced. We
think the management and profit margins plus the growth potential of Fear &
Fear make it an excellent first step for the company. We previously indicated
that we anticipated that this acquisition alone could account for at least 2
cents per share in earnings. Hopefully, that number is already showing signs
of the potential for this area of our business. Our shareholders will be
pleased to know that more positive news in the form of acquisitions and
investments should follow shortly."
Consumers Financial Corporation is a diversified merchant banking and financial
services company dedicated to finding and assessing the value of microcap
companies strategically located in markets where significant growth in profits
can be obtained. CFIN targets companies where management is exceptional,
products are proprietary, where techniques, software or technology provide some
measure of exclusivity, and where profit margins are above average and where
these companies can benefit from CFIN's financial assistance either through
equity or credit facilities. The company trades under the symbol CFIN and can
be found on the Over-The-Counter Pink Sheets.
Safe Harbor Statement under the Private Securities Litigation Reform Act of
1995.
This press release includes certain forward-looking statements within the
meaning of the United States Private Securities Litigation Reform Act of 1995.
These statements are based on Consumer Financial's management's current
expectations and are subject to risks and uncertainties and changes in
circumstances. All forward-looking statements included in this press release
are based upon information available to Consumers Financial as of the date of
the press release, and it assumes no obligation to update or alter its
forward-looking statements whether as a result of new information, future
events or otherwise. Further information on the risks that could affect
Consumer Financial's results of operations is detailed in its filings with the
United States Securities and Exchange Commission, including the Annual Report
for the year ended December 31, 2003.
DATASOURCE: Consumers Financial Corporation
CONTACT: Howard A. Scala, President, Wall Street Communications, Inc.,
+1-800-338-9338, for Consumers Financial Corporation