SAN DIEGO, Aug. 13, 2008 (PRIME NEWSWIRE) -- San West, Inc. is extremely pleased to announce the acquisition of Santee, CA-based Buggy World, San Diego's exclusive authorized sales, service and parts distributor. Unaudited consolidated 2007 revenue for Buggy World was over $1.6 million. In consideration for cash, stock, and notes, the transaction was valued at approximately $615,000.
Buggy World's product line includes brands such as; Volkswagon, Subaru, Fox Racing Shox and Joyner. 2007 Buggy World sales were over $1.6 Million with approximately 30% profit margins with expectations of growing those numbers substantially for 2008.
San West CEO Frank Drechsler stated, "We are absolutely thrilled to have achieved this significant milestone for San West. The addition of the Buggy World brands gives us a complete and world class product line from $1400 to $45,000 for family and sport buggies and $90,000 for high performance sand rails. The Buggy World acquisition also gives us a great platform to launch into the market of gas saving scooters for the San Diego Area with brands such as BMS, CF Moto and Lance Scooter."
He added, "Just as important, we've inherited an immediate installed base of over 100 product lines and 5 exclusive distributor agreements throughout Southern California from which to now channel our sales growth. Additionally, we now maintain floor plan financing with several major financial institution. We believe we are now on our way to establishing San West as a significant player within our segment of the recreational 'off-road' market."
Outgoing Buggy World CEO James Jordan commented, "Having worked closely with Frank and the San West management team throughout this process over the past several months, we firmly believe we are leaving the legacy of the Buggy World brand in extremely capable hands. As a new shareholder of San West, I look forward to the successes which can now be achieved through the convergence of these two organizations."
Mr. Jordan will remain on board in day to day operations for the next 90 days and as a consultant and member of the San West board of directors after that.
About Buggy World
Buggy World is the exclusive authorized sales, service and parts distributor for the San Diego County with a factory trained staff that can answer all product and service questions. Privately held by Mr. Jim Jordan, Buggy World's mission is to bring innovative products and services to the off-road industry and deliver those products through a dedicated retail and internet network. Mr. Jordan has spent his whole life 'off-roading' and racing everything from three wheelers, bikes, buggy's and trucks. Cambio Enterprises, the parent company, has been in business in San Diego for over 20 years and has dealt exclusively with off-road vehicles.
Buggy World currently has two retail locations in San Diego County California as well as a growing internet presence. For further information about Buggy World and its products please visit www.buggyworld.net and http://stores.ebay.com/BuggyWorld-8770.
About San West, Inc.
San West Inc. find its niche in the off-road arena improving designs of buggy manufactures and, selling these products and services as well as repairing of these off-road buggies and additionally providing after market performance products and accessories for buggies. Our products are sold both at our store, online store and through our growing dealer network, while our buggy repair services are sold and repaired at our store.
For further information about San West, Inc. you may visit www.sanwestinc.com.
Forward-Looking Statements
This release contains forward-looking statements, including, without limitation, statements concerning our business and possible or assumed future results of operations. Our actual results could differ materially from those anticipated in the forward-looking statements for many reasons including: our ability to continue as a going concern, adverse economic changes affecting markets we serve; competition in our markets and industry segments; our timing and the profitability of entering new markets; greater than expected costs, customer acceptance of our products or difficulties related to our integration of the businesses we may acquire; and other risks and uncertainties as may be detailed from time to time in our public announcements and SEC filings. Although we believe the expectations reflected in the forward-looking statements are reasonable, they relate only to events as of the date on which the statements are made, and our future results, levels of activity, performance or achievements may not meet these expectations. We do not intend to update any of the forward-looking statements after the date of this document to conform these statements to actual results or to changes in our expectations, except as required by law.