Flameret, www.flameret.com – the developer and marketer of a truly robust array of fire retardant products which are suitable for a variety of applications, today reported signing of a letter of intent to acquire all issued/outstanding capital stock of 35-year veteran Canadian clothing firm, Winner Garment Industries, Ltd.
President of Winner, Ben Wong, indicated that extensive consideration by both management and the Board of Directors has resulted in the overwhelming view that this proposed transaction is “an exciting opportunity for Winner”.
President and CEO of FLRE, Christopher Glover, characterized Winner as satisfying the Company’s acquisition criterion superbly, and noted the company’s 35-year track record of supplying quality products to a global clothing market.
Wong cited access to the public market for capital, and the subsequent growth it would entail, as further justification for the deal, extolling in particular the vast experience of Mr. Glover, who will now oversee the board of directors, in public financial markets.
Wong also pointed to the widely accepted status of Flameret’s patented fire retardant products, sold under brand names Flamex™, UltraFlamex™, Impex™ and Flameret™, as key to increasing Winner’s distribution at a potentially exponential rate.
Glover cited Winner’s $8M+ in revenues each year in the preceding 5 years alone, in addition to an average $1.8M in profits, as being solid indicators that Winner is a perfect acquisition for FLRE that will result in significant returns for the Company’s investors.
Glover sees this as a huge opportunity for both companies, as the combination of FLRE’s fire retardant products and Winner’s specialized industrial protective wear and sportswear should lead to even stronger growth vectors for each.
The Company is projecting a Dec. 31, 2010 close for the acquisition, which will entail an exchange of FLRE shares pursuant to the contemplated share exchange agreement, and will ultimately result in Winner becoming a wholly-owned FLRE subsidiary.
Let us hear your thoughts below:
