Houston, Texas, November 21, 2002 - (PRNewswire)
Nextgen Communications Corp. (OTC BB: NXGC), soon to be re-named Home Solutions of America, Inc., today announced the signing of a definitive agreement to acquire P.W. Stephens, Inc. of Huntington Beach, CA. PW Stephens provides a multitude of services to both residential and light commercial clients. Already a leader in indoor airborne contaminant removal, the company also participates in air duct and carpet cleaning throughout the western United States. The company, with a twenty-year track record, profitably generates over $14 million in annual revenue. The purchase price is valued at approximately $12.5 million, with the consideration being a combination of cash, seller notes, and certain other tangible assets of Nextgen.
Commenting on the acquisition, Chairman and CEO Frank J. Fradella stated, “As a regionally recognized brand, we are excited to have PW Stephens as the first part of our residential services platform previously disclosed to our shareholders. Consistent with that strategy, Stephens has a tremendous core business, with excellent management experience, very capable of being expanded through organic growth. We welcome the entire members of their organization to the Home Solutions family.”
Commenting on the definitive agreement, Scott Johnson, President of PW Stephens, Inc. stated, “Our company offers significant strategic advantages to the benefit of Home Solutions. Our people are excited about the opportunity to expand our current business model and grow proportionally with the robust market we currently enjoy in the western United States. We look forward to adding more services to grow our current customer base. In addition, we have identified several acquisition candidates that we believe a public company can assist us in acquiring.”
Nextgen is able to finance a portion of the purchase price through a private placement of approximately $1.5 million of common stock to certain accredited investors. The Company continues to negotiate the acquisition of additional residential services companies located across the United States.
Statements included in this update that are not historical in nature are intended to be, and are hereby identified as, “forward-looking statements’’ for purposes of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934, as amended by Public Law 104-67. Forward-looking statements may be identified by words including “anticipate,’’ “believe,’’ “intends,’’ “estimates,’’ “expect,’’ and similar expressions. The Company cautions readers that forward-looking statements including, without limitation, those relating to the Company’s future business prospects are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward-looking statements, due to factors such as those relating to economic, governmental, technological, and other risks and factors identified from time to time in the Company’s reports filed with the SEC.
