Jeantex Group to Acquire Sanatex Inc.
Monday , November 28, 2005 17:00 ET
LOS ANGELES, Nov 28, 2005 /PRNewswire-FirstCall via COMTEX/ -- Jeantex Group, Inc (OTC Bulletin Board: JNTX; Berlin Stock Exchange: A0F45Q), a corporation engaged in the design, development, manufacturing and marketing of consumer products for apparel markets worldwide, today announced that it has signed a Letter of Intent to acquire all the issued and outstanding stock of Sanatex Incorporated.
Based in Carson, California, Sanatex is engaged in the manufacturing of clothes and packaging materials, dyeing, and finishing for the apparel and fashion industries. With manufacturing facilities situated in the Private Free Zone in Kalubeia, Egypt, Sanatex enjoys exemption from tariffs on finished goods shipped to the United States. Sanatex expects revenue growth of approximately $35 million and earnings of approximately $3.5 million for the fiscal year ended December 31, 2006.
According to the Letter of Intent, Jeantex will purchase all of the issued and outstanding stock of Sanatex in exchange for newly-issued shares of Class A common stock of Jeantex. The number of shares will be equal to 51% of all the issued and outstanding shares of Class A common stock of Jeantex immediately following the closing of the transaction and Sanatex will become a wholly-owned subsidiary of Jeantex Group. The Company intends to enter into a stock purchase agreement which is subject to customary closing conditions, and is expected to close this transaction in the fourth quarter of fiscal 2005. Jeantex believes that the acquisition will be accretive to earnings in the fourth quarter of fiscal 2005.
As a combined entity, the Company will be led by Hassanein M. Hassanein, Chief Executive Officer of Sanatex. Mr. Hassanein originally founded Misr-Taiwan in 1989, a majority owned company of Sanatex, Inc. Mr. Hassanein has extensive worldwide experience in development, design, manufacturing and importing and exporting of apparel goods. He is Egypt's second largest exporter of apparel goods. He also is helping to promote the development of " Egyptian Cotton" , a certified state-run program created to produce textiles made from the finest Egyptian cotton. Mr. Hassanein maintains textile operations in Taiwan and China.
Henry Fahman, Chairman of Jeantex Group, Inc. said, " We are happy to welcome Sanatex to the Jeantex family and believe this transaction will have a strong impact on shareholder value. Sanatex has been very successful as a low cost private label manufacturer for large mass merchant and department stores such as Target, Kohl's, Sears and Wal-Mart. The Company's success stems in part from its 238,000 square-foot manufacturing facilities in Egypt, which operates as a duty-free qualified investment zone into the Untied States. We plan to increase our production for both Sanatex and Jeantex out of this facility."
Mr. Fahman continued, " Additionally, Sanatex has a strong opportunity to increase penetration within its existing distribution channels by working with Jeantex to improve their design capabilities and overall product assortment. We also plan to leverage Jeantex's existing customer relationships in the U.S., Europe, and Japan which should enhance the sales and overall profitability for Sanatex."
Hassanein M. Hassanein, Chief Executive Officer of Sanatex, Inc. stated, " We are very enthusiastic about becoming part of a public company with Jeantex and believe this transaction will position us to achieve stronger sales and profitability by providing additional services to our customers and utilizing more of our manufacturing capacity. Jeantex's design expertise and growing upscale customer base provides us with an excellent platform from which Sanatex will realize its potential while also developing synergies and opportunities across the Jeantex organization. The Jeantex and Sanatex fit will take both companies to a higher level in the marketplace."
About Jeantex Group, Inc.
Jeantex Group, Inc. (formerly Lexor Holdings, Inc.), through its wholly-owned subsidiary Jeantex, Inc., engages in the design, development, manufacturing, and marketing of consumer products for the apparel markets worldwide. Jeantex manufactures denim jeans for prominent brand names such as ABS, Blue Cult, Guess, Hurley, Limited Express, and Lucky. The Company also manufactures and markets new lines of uniquely designed high-quality jeans, T-Shirts, and accessories under the " Bone People" trademark, which are being marketed in Germany, Japan, Portugal, Scandinavia, Spain, and the US. Further information about Bone People(TM) can be found at www.bonepeople.org
This news release contains forward-looking statements that are subject to certain risks and uncertainties that may cause actual results to differ materially from those projected on the basis of such forward-looking statements. Such forward-looking statements are made based upon management's beliefs, as well as assumptions made by, and information currently available to, management pursuant to the " safe-harbor" provisions of the Private Securities Litigation Reform Act of 1995.
Investor Contact:
Bill Zima
Integrated Corporate Relations
(203) 682-8200
SOURCE Jeantex Group, Inc.
Bill Zima of Integrated Corporate Relations, +1-203-682-8200, for Jeantex Group, Inc.
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