June 24, 2008
Seaway Valley in Talks With Area Retailer
Company would closely complement current retail and consumer product holdings
Seaway Valley Capital Corporation[email protected]
Gary Nash, 212-732-4300
Seaway Valley Capital Corporation (OTC Bulletin Board: SWVC) today reported that it is currently in discussions with an area retailer for possible acquisition. The company, which has and has had locations in various northern and central New York markets, generated approximately $15.2 million in revenues and income before taxes of over $500,000 in calendar 2007.
Thomas Scozzafava, CEO of Seaway Valley, stated, "If this company is, indeed, acquired, Seaway would be getting with it a proven operator with track record of success." Mr. Scozzafava added, "Additionally, this particular business type would very much complement both Hackett's and certain business lines recently acquired in the North Country Hospitality deal. And although there is a desire to keep the details confidential at this juncture, hopefully we can release more definitive information shortly."
About Seaway Valley Capital Corporation
Seaway Valley Capital Corporation makes equity, equity-related, and debt investments in companies that require expansion capital. Seaway also seeks investments in leveraged buyouts and restructurings. Seaway will consider investment opportunities in a number of different industries, including retail, restaurants, media, business services, manufacturing, and select technologies. Current holdings include:
Patrick Hackett Hardware Company
Patrick Hackett Hardware Company ("Hackett's") is one of the nation's oldest retailers with roots dating back to 1830. Hackett's is a full line department store specializing in premium name brand merchandise and full service hardware. Hackett's, now with ten locations, features brand name clothing for men, women, and children, and a large selection of brand name athletic, casual, and work footwear. Hackett's also carries domestics, home decor, gifts, seasonal merchandise and sporting goods. Hackett's full service True Value hardware department features traditional hardware, tool, plumbing, paint and electrical departments. Hackett's also owns and operates four RadioShack stores and at certain stores leases space to Payless ShoeSource. (www.hackettsonline.com)
Sackets Harbor Brewing Company
Sackets Harbor Brewing Company ("SHBC") develops, produces, and markets micro brewed beers such as the award winning "1812 Amber Ale" and "Railroad Red Ale" as well as "Thousand Island Pale Ale", "1812 Amber Ale Light" and "Independence Wheat" specialty beers. Its "1812 Amber Ale" is the company's flagship brand and was the winner of a Silver Award at the 1998 World Beer Championship and has been aggressively marketed to command a significant retail presence in the regional market place. Management estimates 1812 Ale has an approximate 15% category market share within its primary distribution area and distributes keg and bottled beer to over 300 locations in northern New York. The company has also developed complementary products such Sackets Harbor Coffee and Sackets Harbor Brewing Co. Root Beer.
Sackets Harbor Brew Pub
The Sackets Harbor Brew Pub (the "Brew Pub") is an operating restaurant and bar that produces its own specialty beer on site while also offering fine dining. The Brew Pub offers six of its own brews on tap including each of its regionally sold beers such as 1812 Ale, Railroad Red, and Thousand Island Pale Ale as well as ever changing seasonal offerings.
Good Fello's Brick Oven Pizza and Wine Bar
Good Fello's Brick Oven Pizza and Wine Bar ("Good Fello's") is featured in charming interior of brick and wood and specializes in excellent-yet-affordable Italian food. The focal point of the restaurant is its large brick oven for cooking pizza, appetizers and special pasta entrees along a comfortable bar that offers a wide variety of wine and beer including Sackets Harbor Brewing Company selections. Good Fello's warmth and intimate atmosphere offers a unique setting rarely found in the marketplace for neighborhood Italian eateries.
Alteri Bakery has serviced the north country region with quality baked goods since 1971, when Querino and Ida Jane Alteri purchased the bakery, which is still operated by the founders' son, Mark. Alteri's is now located in a state of the art baking facility in the heart of Watertown's business district, and is one of the last traditional Italian bakeries in the area. Alteri's brings four generations of baking experience and over 80 years of serving northern N.Y. with the finest "true" Italian breads and specialty pastry items, such as cakes, cookies, muffins, bagels, and specialty gift baskets. Alteri's products can be found at local restaurants, grocery stores, schools, and its own store. In addition, Alteri's recently assumed the production of sub rolls for the entire Jreck Subs franchise chain of 47 locations, which alone includes approximately two million five hundred thousand rolls baked and shipped annually. ( www.alteribakery.com )
Jreck Subs Franchises
Seaway Valley owns and operates five Jreck Subs franchise locations in northern and central New York including Watertown, Clayton, Cape Vincent, Alexandra Bay, and Liverpool. The Jreck Subs Company was started in 1967 by five local entrepreneurs, and since then, Jreck Subs has grown to over forty-seven locations in northern and central New York. The Jreck Subs concept is quality foods at moderate prices. Jreck Subs have a variety of hot and cold sandwich choices, homemade style soups, and a children's menu. ( www.jrecksubs.com )
Safe Harbor Statement
This press release contains statements that may constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or current expectations of the Company, and members of their management as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Important factors currently known to management that could cause actual results to differ materially from those in forward-statements include fluctuation of operating results, the ability to compete successfully and the ability to complete before- mentioned transactions. The company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.
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