Exhibit 99
Mace Security International, Inc.
1000 Crawford Place, Suite 400
Mt. Laurel, NJ 08054
(856) 778-2300 - www.mace.com
Eduardo Nieves, Jr., Investor Relations
FOR IMMEDIATE RELEASE
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MACE SECURITY INTERNATIONAL TO ACQUIRE WASH DEPOT HOLDINGS,
A CAR WASH CHAIN WITH ANNUAL REVENUES OF $109 MILLION
Mount Laurel, New Jersey, March 9, 2000 -- Mace Security International, Inc.
(Mace) (Nasdaq: Mace) today announced that it has signed a definitive purchase
agreement to acquire Wash Depot Holdings, Inc. (Wash Depot), an operator of 73
car wash locations in 15 states. Wash Depot, a private company headquartered in
Saugus, Massachusetts, presently generates annualized revenues of approximately
$109 million. At the completion of the transaction, Mace will become the
largest car wash chain in the United States operating 134 car wash locations in
18 states. The Company will be washing approximately 10 million automobiles
annually, and servicing approximately 20 million customers annually through its
car washes and ancillary car care services. On an annualized run rate basis,
Mace anticipates revenues of approximately $170 million and EBITDA of
approximately $34 million after planned synergies are achieved. This is a 178%
increase to Mace's current total in annualized revenues, and a 240% increase to
Mace's current total in EBITDA.
Pursuant to the terms of the agreement, David T. Smith, founder, Chairman and
Chief Executive Officer of Wash Depot, will become Mace's President and Chief
Operating Officer. Mr. Smith has over 25 years of extensive experience in the
acquisition, development, sale and management of real estate assets including
residential properties, shopping centers, office buildings and car wash
facilities. Previously, Mr. Smith was the founder, Chairman and President of
American Home Shield Corporation, a publicly-traded insurance company serving
the real estate industry. Mr. Smith will be responsible for overseeing Mace's
day to day operations and implementing operational policy.
Closing under the agreement is subject to several conditions, including Mace and
Wash Depot shareholder approval, lender consents, review of information to be
exchanged between Mace and Wash Depot, antitrust clearance and other typical
closing conditions. Though Mace is optimistic that closing will occur, no
assurance can be given that the closing conditions will be satisfied.
Louis D. Paolino, Jr., CEO and Chairman of Mace, said, "This is a defining
moment for the entire car wash industry. Mace will be the largest car wash
chain that has ever been assembled in the United States. The combination of the
two companies' operational management teams, coupled with the critical mass of
operating and marketing 134 car washes in 18 states, enables us to utilize
diverse economies of scale to increase profit margins, while continuing to
enhance the operating efficiencies that have already begun to develop at Mace."
Mr. Paolino added, "I am extremely pleased with the appointment of David Smith
as our President and Chief Operating Officer. Mr. Smith is highly regarded in
the car wash industry as a successful operator and manager of numerous wash
locations, as well as in the financial community for his prior performance as a
senior executive of several public companies. Mr. Smith, along with Michael
Fazio, who will continue as Vice President of Operations, will lead Mace's new
operational structure by immediately implementing consistent internal control
systems to integrate both companies, as well as executing the roll-out of our
future brand name image to all of our car wash locations."
David T. Smith, Chief Executive Officer of Wash Depot, said, "I look forward to
working with Mr. Paolino and Mace's entire management team. What Mace has
accomplished in the past 10 months has been very essential for the future
development of the car wash business. Mr. Paolino and Mace management have
established significant operating standards and fundamentals that will be
emulated by all future public companies focusing on the car wash and car care
service industries." Mr. Smith also said, "Combined, Mace and Wash Depot will
emerge as a performance-based business consisting of a modernized and customer-
oriented image with strong internal control systems, highly-experienced
management and internal growth that will ultimately revolutionize the entire car
wash industry."
Mace's corporate headquarters will stay in Mount Laurel, New Jersey. At the
completion of the transaction, Mace will be operating car washes in 18 states
including Arizona, California, Connecticut, Delaware, Florida, Georgia,
Illinois, Indiana, Iowa, Massachusetts, Michigan, Minnesota, Missouri, New
Hampshire, New Jersey, Pennsylvania, Tennessee and Texas.
Wash Depot Holdings, Inc., located in Saugus, Massachusetts, was founded in 1995
by its current Chief Executive Officer, David T. Smith, and current Executive
Vice President, Andrew Smith. Wash Depot is a full service and exterior only
car wash operating company consisting of 73 car washes in 15 states. Of Wash
Depot's 73 car wash locations, all contain professional detailing services, 72
contain convenient stores or similar related retail product shops, 15 contain
oil and lubrication centers and eight contain gasoline dispensing services.
Mace Security International, Inc. is a provider of car care services, which owns
and operates numerous car washes nationwide. The Company, through its wholly
owned subsidiary, Innovative Control Systems, Inc., is also a leading
manufacturer and supplier of a Windows-based computerized car wash tunnel
control system. Additionally, MSI is a leading producer of less lethal defense
sprays for the consumer market.
THIS PRESS RELEASE INCLUDES STATEMENTS WHICH MAY CONSTITUTE FORWARD-LOOKING
STATEMENTS MADE PURSUANT TO THE SAFE HARBOR PROVISION OF THE PRIVATE SECURITIES
LITIGATION REFORM ACT OF 1995. THIS INFORMATION MAY INVOLVE RISKS AND
UNCERTAINTIES, INCLUDING BUT NOT LIMITATION, RISKS RELATING TO THE FINANCIAL
OUTCOMES OF THE PLANNED BUSINESS AND GROWTH STRATEGIES, THAT COULD CAUSE ACTUAL
RESULTS TO DIFFER MATERIALLY FROM THE FORWARD-LOOKING STATEMENTS. ALTHOUGH THE
COMPANY BELIEVES THAT THE EXPECTATIONS REFLECTED IN SUCH FORWARD-LOOKING
STATEMENTS ARE BASED ON REASONABLE ASSUMPTIONS, SUCH STATEMENTS ARE SUBJECT TO
RISKS AND UNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY
FROM THOSE PROJECTED.
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