Cornerstone Acquires Assets from Home Solutions
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Last Update: 9:32 AM ET Mar 23, 2006
VANCOUVER, BRITISH COLUMBIA, Mar 23, 2006 (CCNMatthews via COMTEX) -- Cornerstone Industries International Inc. (the "Company") (CA:CIA: news, chart, profile) (FRANKFURT WKN: A0HFXV) is pleased to announce that it has entered into an agreement to acquire certain assets of Cornerstone Building and Remodeling Inc. ("B&R), a subsidiary of Home Solutions Inc, through the Company's wholly owned subsidiary Cornerstone Granite and Marble Wholesale, Inc. ("CGMW"). The transaction relates only to the acquisition of the building and remodeling business, and excludes Home Solutions' granite fabrication and granite installation contracts with national retailers, such as Home Depot and Centex.
B&R is wholly owned by Home Solutions Inc. and is in the business of general contracting and remodeling services, which includes all in home remodeling and commercial buildings. It also focuses on the sales of custom marble and granite applications for their residential customer base. CGMW is purchasing US$3.9 million of B&R's existing contracts and assuming US$521,000 of payables in consideration for the purchase price of US$3.5 million. CGMW will pay US$500,000 on closing, with the balance of the purchase price, plus interest at the prime rate, to be paid over 36 months, which payments are secured by the assets of CGMW. The Company has agreed to guarantee the payment obligations of CGMW to Home Solutions Inc. for the B&R division.
Anthony Leeber, the President and a director of the Company, is the CEO and a director of B&R, but not an insider of Home Solutions Inc., a publicly traded company whose shares are listed for trading on American Stock Exchange (HOM :
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"The acquisition of B&R is a tremendous opportunity for CGMW," commented Aly B. Mawji, a director of Cornerstone Industries International. "B&R has been growing at a very significant rate for the past few years and we anticipate this trend to continue. We look forward to providing some further details after the closing of the acquisition."
The acquisition of B&R's assets is subject to TSX-V acceptance.
CGMW is a Florida corporation which imports and supplies, on a wholesale basis, raw granite and marble slabs, sinks, tiles, hardware and fabrication supplies. CGMW offers competitive pricing to U.S. based retailers on raw slabs and stone fabrication tools and supplies.
The head office of CGMW is located at 5642 Enterprise Parkway, Fort Myers, FL 33905. Its public company and investor relations office is located at Suite 1304 - 925 West Georgia Street, Vancouver, B.C., Canada V6C 3L2.
ON BEHALF OF THE BOARD OF DIRECTORS
Cornerstone Industries International Inc.
ALY B. MAWJI
SOURCE: Cornerstone Industries International In
