For Release at 4:30 P.M. EST on September 1, 1999
MLC Agrees to Acquire CLG, Inc.
Company to acquire an $85MM lease portfolio
HERNDON, VA - September 1, 1999 -- MLC Holdings, Inc. (Nasdaq: "MLCH") announced
today that it has executed a definitive agreement with Centura Bank (a wholly
owned subsidiary of Centura Banks, Inc. -- NYSE: "CBC"), to acquire all of the
stock of its wholly owned technology leasing company, CLG, Inc. CLG was founded
in 1980, has total assets of $94.5MM, and is a leading technology lessor in the
southeastern United States. The acquisition has been approved by the board of
directors of Centura Bank and CLG, and is subject to MLC board of director
approval, final documentation, and approved Hart-Scott filing. The acquisition
is expected to close on September 30, 1999 and total consideration will be
approximately $34MM in cash and $3.5MM in MLCH common stock.
Phillip G. Norton, Chairman, President, and Chief Executive Officer of MLC said
"We are very excited about the acquisition of CLG, which is a company we have
known for a long time and which has an strong customer base in key metropolitan
markets, such as Charlotte and Raleigh, N.C., Greenville, S.C, and southern
Virginia. With CLG's excellent sales force, we will continue our cross-selling
strategy focusing on online supply-chain management services including
procurement, leasing and asset management services. The acquisition should be
accretive based on historical earnings and results will be further enhanced by
significant cost-savings and efficiencies obtained by combining CLG and MLC
Group."
Mr. Norton continued "This acquisition should increase our recurring, balance
sheet earnings by doubling our lease portfolio, which is a continuing goal of
MLC."
Mr. Norton concluded "We are very pleased to have Centura as a shareholder of
MLC. I believe that Centura's ownership in MLC will have significant long term
benefits, and may help us increase institutional coverage and interest in our
stock."
MLCH is a rapidly expanding technology provider of online supply-chain
management services which includes procurement, leasing and asset management
services. MLCH has fifteen locations in the United States and is headquartered
in Herndon, VA.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of
1995: The statements contained in this release which are not historical facts
may be deemed to contain forward-looking statements. Actual results may vary due
to the following risks and uncertainties, including, without limitation, demand
and competition for the Company's lease financing and equipment sales and asset
management services, and the products to be leased or sold by the Company, the
continued availability to the Company of adequate financing, the ability of the
Company to recover its investment in equipment through remarketing, the
successful acquistion, integration, and continuing operation of CLG, and other
risks or uncertainties detailed in the Company's Securities and Exchange
Commission filings. Investors are cautioned that current financial results may
not be indicative of future results.
For Investor Relations and Additional Information:
Kley Parkhurst, Investor Relations
(703) 709-1924/KParkhurst@MLCGroup.com
Steve Mencarini, CFO
(703) 810-2596/SMencarini@MLCGroup.com
www.mlcgroup.com
www.pcplus.com
www.clginc.com
www.mlci.com
www.icn.com
For 4:30 P.M. Release on September 2, 1999
MLC Corrects Reported CLG Purchase Price
Purchase Price is $36.5 Million, not $37.5 Million as previously reported
HERNDON, VA - September 2, 1999 -- MLC Holdings, Inc. (Nasdaq: "MLCH") announces
a correction of yesterday's press release. The correct total consideration for
the purchase of CLG, Inc. will be $36,510,000, to be paid $33,465,000 in cash
and $3,045,000 in MLCH common stock. At MLC's option, up to $1,965,000 of the
cash portion can be paid in MLCH common stock. The company had announced
yesterday, in error, that the consideration would be approximately $34MM in cash
and $3.5MM in MLCH common stock.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of
1995: The statements contained in this release which are not historical facts
may be deemed to contain forward-looking statements. Actual results may vary due
to the following risks and uncertainties, including, without limitation, demand
and competition for the Company's lease financing and equipment sales and asset
management services, and the products to be leased or sold by the Company, the
continued availability to the Company of adequate financing, the ability of the
Company to recover its investment in equipment through remarketing, the
successful acquistion, integration, and continuing operation of CLG, and other
risks or uncertainties detailed in the Company's Securities and Exchange
Commission filings. Investors are cautioned that current financial results may
not be indicative of future results.
For Investor Relations and Additional Information:
Kley Parkhurst, Investor Relations
(703) 709-1924/KParkhurst@MLCGroup.com
Steve Mencarini, CFO
(703) 810-2596/SMencarini@MLCGroup.com
www.mlcgroup.com
www.pcplus.com
www.clginc.com
www.mlci.com
www.icn.com