WHITEHOUSE, N.J., Jan. 7, 2003 (PRIMEZONE) -- AAMPRO GROUP, Inc. (OTCBB:TDSY) announced today that it acquired a competitor, National Employment Alternatives, Inc., a New Jersey-based PEO or professional employer organization with approximately $4 million in annual revenue. The acquisition closed on December 26, 2002. The transaction was structured as an all cash asset purchase structured over 8 months and is accretive to earnings. This acquisition increases our revenue by more than 20% and demonstrates our company's strategy to acquire companies on an accretive basis.
This acquisition is structured as part of our recently launched marketing and expansion program. This strategy is comprised of both a $100 million sector acquisition strategy and a multi-channel marketing campaign.
The primary goal of this strategy is to capture additional market share and build upon our 2001 revenues of more than $17 million. Trident CEO Stephen Farkas commented, "We are most excited about acquiring NEA and we look forward to a year of strong growth both organically and with regard to other acquisitions."
The PEO market is a $40 plus billion dollar a year industry with annual growth exceeding 30% according to NAPEO. "The continuous and complex legislation by the Department of Labor, IRS, State and Local Government combined with the escalating costs of benefits and quality healthcare create a fertile environment for organic growth in the small and medium size company market. We intend to capitalize on this business climate by aggressively marketing our services to this underserved market," explained Stephen Farkas, CEO.
About the Company:
The Company, through its subsidiary AAMPRO, Inc. ("AAMPRO"), has refocused its business operations as a professional employer organization ("PEO"). AAMPRO provides a broad range of services comprised primarily of employee leasing and human resources management. These services include payroll and benefits administration, health and workers' compensation insurance programs, state and federal labor compliance, tax filings, safety program design and management and other related services to small and medium-sized businesses nationally with a primary concentration in the tri-state (New York/New Jersey/Pennsylvania) region. AAMPRO was organized as a corporation in 1995 and has provided PEO services since inception.
AAMPRO's services are designed to improve the productivity and profitability of small and medium-sized businesses by relieving business owners and key executives of many employer-related administrative and regulatory burdens that enable them to focus on the core competencies of their businesses.
Forward-Looking Statements
This news release contains forward-looking statements about our business, or financial condition and prospects that reflect our assumptions and beliefs based on information currently available. We can give no assurance that the expectations indicated by such forward-looking statements will be realized. There may be other risks and circumstances that we are unable to predict. When used in this news release, words such as "believes," "expects," "intends," "plans," "anticipates," "estimates" and similar expressions are intended to identify forward-looking statements, although there may be certain forward-looking statements not accompanied by such expressions. All forward-looking statements are intended to be covered by the safe harbor created by Section 21E of the Securities Exchange Act of 1934.