Newspaper article THE JOURNAL RECORD

Texas Hitech Buys Lloyd's / City Firm Still in Acquisition Mode after $25 Million Purchase

Newspaper article THE JOURNAL RECORD

Texas Hitech Buys Lloyd's / City Firm Still in Acquisition Mode after $25 Million Purchase

Article excerpt

Texas HiTech, 525 Central Park Dr., completed Tuesday a $25 million acquisition of Lloyd's Electronics Inc. of Edison, N. J.

Lloyd's was a subsidiary of the Castleton Development Corp., which in turn is a subsidiary of Bacardi Corp. of San Juan, Puerto Rico.

The new company, renamed THT Lloyd's Inc., designs, markets and imports televisions, video equipment and other consumer electronic products to domestic and international markets, according to Roy Dunlap, vice-president of Texas HiTech.

In earlier reports about the transaction, company representatives had indicated the purchase would greatly compliment Texas HiTech's existing consumer audio and video products.

Texas HiTech manufactures and markets 29 products ranging from cellular telephones and televisions to strategy board games. It conducts its manufacturing of consumer electronics in Hong Kong, Taiwan, Korea and Tokeo, with distribution and marketing handled in U.S. offices.

This is the second acquisition for Texas HiTech since the begining of the year, Dunlap reported, and not likely the last one in the works for Texas HiTech.

"We are still in the acquisition mode," Dunlap said. "We will research possible candidates in our field."

That field includes telecommunications, solar energy and electronics, said Dunlap.

All of Lloyds' 117 employees were retained, Dunlap said, although he added, "I really hate to comment on that. . .We will have to review them."

The first 12 months of business for THT Lloyd's will be based on expected revenues in the $1 million range, according to Randall P. Marks, president of the new company. The company also plans on a "significant increase in profits."

Lloyd's had sales of between $80 million and $90 million in 1985, according to previous reports by Texas HiTech representatives.

Marks cautioned, however, that "achievement of revenue and profit goals will be largely dependent upon satisfactory general economic and market conditions as well as continued availability from factory suppliers upon reasonable terms."

To help finance the transaction, the company asked shareholders to authorize new shares of preferred and common stock for a private placement of about $6 million.

A one-for-10 reverse stock split recently approved by the shareholders has become effective, Marks said.

"If you owned 10 shares of stock, you now have one share of stock of increased value," Dunlap said in explanation of the stock split.

"It's an equal value to the 10 shares, but it is now one share," he said. …

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