Value Holdings, Inc. (OTCBB:VALH), today announced that it has entered into an agreement to purchase MGI Packers, Inc., a meat slaughtering, processing and distribution company located in Kitchener, Ontario.
MGI generated sales of more than $85 million (U.S.) in its most recent fiscal year. The company also has assets of approximately $11 million (U.S.). Value Holdings anticipates that this would give the company the required equity to apply for a listing on a national stock exchange such as the NASDAQ. Key management personnel will stay with the company.
“We intend to leverage our expertise in the wholesale distribution of commodity products to expand sales and increase profitability at MGI,” said Robert Ziner, President and CEO of Value Holldings, Inc.
MGI, in addition to its regular meat processing operations, also produces Halal certified meats for those Muslims who follow Islam’s dietary regulations. There are approximately 6 million Muslims in North America. MGI is one of the few certified producers in North America.
The companies expect to be able to close the acquisition in approximately 60 days. Value will pay $4 million in stock for MGI and will invest another $1 million into operations. Value will also assume certain debts of MGI.
Value Holdings, Inc. is a holding company formed to acquire businesses. The corporate goal is to build well-run independent subsidiaries which have solid market niches with compounded growth rates in terms of revenues and earnings.
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This release contains forward-looking statements that are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. Forward-looking statements involve the known and unknown risks and uncertainties which may cause the company’s actual results in future periods to differ materially from what is anticipated. Such statements include such words as “expect” and “anticipate.”