Business
Priva acquires accounts from major U.S. competitor
Priva acquires accounts from major U.S. competitor.
About this update from Canamex Gold Corp
[{"type":"text","content":"\n\n\n\n\nMONTREAL, Nov. 9 /CNW Telbec/ - Priva Inc. (TSXV: PIV) announces that it\nhas successfully completed the takeover of approximately $6,000,000 USD\n($7.1mm CDN) in annualized sales of specific retail accounts from New Jersey\nbased Philmont Manufacturing, a division of The Strongwater Group. Philmont is\nan Englewood, N.J. based company that designs, manufactures and distributes\nwaterproof and absorbent textile products for both the young and the elderly,\nto retailers predominately in the U.S. Accounts that have been acquired by\nPriva pursuant to this transaction include such chains as J.C. Penney,\nDillard's, and Bon-Ton, as well as many independent retailers.\nThe delay in the completion of this transaction, previously announced on\nAugust 8, 2005, was a result of Philmont's bank taking greater financial\ncontrol of all aspects of The Strongwater Group. Therefore, by Priva agreeing\nto immediately make payment in full at time of closing, instead of paying over\na 12 month period as previously agreed, Priva was able to eliminate a payment\nto The Strongwater Group of an undisclosed amount of cash FOR GOODWILL and THE\nISSUANCE OF 1,000,000 common shares from treasury valued at $Cdn 370,000.\nPriva is now simply purchasing inventory valued at $US 1,000,000 for\n$US 880,000. In addition to purchasing the discounted inventory, Priva HAS\nissued a total of one million, 5 year Sales Performance Warrants to Michael\nRattner. These Warrants are exercisable at $Cdn 0.50 in Years 1 and 2, with an\nincrease in the exercise price in each of the 3rd, 4th and 5th years of\n$Cdn 0.05 / year. Mr. Rattner has joined Priva as Executive Vice President OF\nPriva (USA) Inc. Prior to joining Priva, Mr. Rattner was the President of The\nStrongwater Group, where he played an integral role in the growth and\ncultivation of the retail accounts of the Philmont division. Mr. Rattner will\nnot only ensure a smoother transition for the Philmont customers to Priva, but\nhis 20 years experience with Philmont will add to the depth of Priva's\nmanagement team.\nThe inventory being acquired is required to fulfill the backlog of orders\nto be shipped to the retail accounts that Priva will be servicing. It is\nanticipated that this transaction will result in Priva almost doubling its\nsales to $Cdn 16 million in fiscal 2006. David Horowitz, Priva's Pr...