SHERMAN OAKS, CA — The board of directors of Earl Scheib, Inc., today announced it has elected to terminate the Letter of Intent previously entered into on May 13, with Elden Holding Group, LLC, a private real estate investment company.
Elden had proposed to acquire all of the company’s issued and outstanding capital stock for approximately $15 million, plus assumption of certain transaction and related costs estimated at more than $2 million.
Christian Bement, president and CEO of Earl Scheib said: “While the board and management are disappointed that the parties were unable to complete the proposed transaction, the company is committed to strategies designed to maximize shareholder value. In that regard, I am pleased that our recently completed fiscal year, which ended on April 30, 2004, saw quarterly same store sales increases and that trend continued through the company’s first fiscal quarter of 2005, which ended on July 31, 2004. The board is hopeful that the company’s improved financial performance will continue which should assist us in our mission to maximize shareholder value.”
For more information, visit: www.earlscheib.com.
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