SDC International Acquires 55% of Czech Aircraft Manufacturer
PALM BEACH, Fla.---SDC International, Inc., which is pursuing a strategy to acquire and operate manufacturers of industrial and transportation products in Central and Eastern Europe, today announced the acquisition of a 55% equity interest in Moravan, a.s., an aircraft manufacturer based in Ostrokovice, Czech Republic. The acquisition, which will be finalized upon the recording of the newly acquired shares into the Czech Commercial Register, allows SDC to surpass the minimum exchange listing requirements of both NASDAQ and the American Stock Exchange. "This represents SDC's initial acquisition in its quest to synergistically match American marketing and financial skills with the manufacturing and engineering capabilities available in formerly Communist Central and East Europe countries,'' stated Ronald Adams, Chairman and Chief Executive Officer of SDC International, Inc. Since its founding in 1934, Moravan has delivered over 5,000 training, sport and agricultural airplanes to over 40 countries. On several occasions in recent years, Moravan aerobatic aircraft have taken first place internationally in annual championships. The company manufactures single, two-seat and four-seat propeller driven training and aerobatic military and civilian trainers. Moravan recently made its first sales to U.S. and Canadian flight training programs and in August the Company was selected as the supplier for a US$20 million order from the Egyptian Air Force. Moravan's subsidiary operations manufacture inventory and air cargo containers, seat and restraint belts, and jet aircraft components. Customers include such companies as MercedesBenz, BMW, Air France, and Boeing's Aero Vodochody jet manufacturing unit. "SDC plans to develop a global marketing strategy for Moravan's existing product line, while working with the defense department of the Czech Republic, a new member of NATO, on new trainer designs,'' continues Adams. SDC Board of Directors' Advisor General Alexander M. Haig, Jr. recently met with Czech Defense Minister Vladimir Vetchy and Moravan Chairman Libor Soska in Prague. Haig, a former United States Secretary of State and the Allied Supreme Commander of NATO for five years, observed that "the SDC acquisition of Moravan should broaden Moravan's access to new markets, as the type of training aircraft which Moravan manufactures are a staple of many government and military programs around the world. SDC has the capability to take this Czech company into the global marketplace''. Moravan financial statements, which will be consolidated after acquisition with those of SDC International, currently reflect assets of approximately US$38 million. Moravan reported a profit of US$6.5 million for the year ended December 31, 1998, according to its certified audit report. SDC has approximately 7.5 million shares outstanding. Despite a working capital deficiency is 1999, Moravan currently has an order backlog valued at approximately US$40 million which should be produced in 1999-2000. Mike Srkal, SDC President and Chief Operating Officer revealed that "SDC plans to increase the amount of working capital available to the subsidiary, allowing Moravan to accelerate production in accordance with its healthy order backlog.'' SDC International is acquiring its 55% equity interest in Moravan for approximately US$16 million in cash and notes. The acquisition payment will remain in escrow until the newly acquired shares are approved by the administrative court and registered in the Commercial Registry, according to Czech commercial law. In addition to General Haig, SDC's Board of Directors' Advisor shareholders include Ronald Harbour, President of Detroit-based automotive management firm Harbour Associates, Richard Donnelly, former President of General Motors - Europe, and Dennis Pawley, former Executive Vice President of DaimlerChrysler. SDC International is currently vying to acquire controlling interest and all bank debt of Tatra, a.s., one of the leading specialty truck manufacturers in Europe. Founded in 1850 and currently a producer of approximately 2,000 trucks annually, Tatra's revenues in 1998 were almost US$240 million. SDC International is headquartered in Palm Beach, Florida and its common stock traded on the Over-the-Counter Bulletin Board under the symbol "SDCN''.
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SDC International Acquires 55% of Czech Aircraft Manufacturer
