SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) March 6, 1998
DIAMOND HOME SERVICES, INC.
(Exact name of registrant as specified in charter)
Delaware 0-20829 36-3886872
(State of other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
222 Church Street, Woodstock, Illinois 60098
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (815) 334-1414
N/A
(Former name or former address, if changed since last report)
Item 5. Other Events.
On March 6, 1998, the Registrant issued a press release, a copy of which is
attached as Exhibit 99.1 to this Form 8-K and incorporated herein by reference.
Item 7. Financial Statements and Exhibits.
(c) Exhibits.
Exhibit No. Description of Document
99.1 Press release dated March 6, 1998 issued by the
Registrant.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this Report to be signed on its behalf by the
undersigned hereunto duly authorized.
DIAMOND HOME SERVICES, INC.
Date: March 11, 1998 By: /s/ Richard G. Reece
Richard G. Reece
Vice President and
Chief Financial Officer
DIAMOND
Home Services, Inc.
NEWS RELEASE
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Friday March 6, 8:30 am Eastern Time
CONTACT: Richard G. Reece
Chief Financial Officer
(815) 334-2414
DIAMOND DOUBLES ITS SIZE
DIAMOND HOME SERVICES, INC. SIGNS STOCK PURCHASE
AGREEMENT TO ACQUIRE REEVES SOUTHEASTERN CORP.
WOODSTOCK, Ill., March 6 -- Diamond Home Services, Inc. (Nasdaq: DHMS) today
jointly announced with Reeves Southeastern Corporation that both companies have
signed a purchase agreement for Diamond to acquire all the stock of Reeves
Southeastern Corporation for approximately $42 million.
Reeves Southeastern, headquartered in Tampa, Florida, is a closely-held
corporation and one of the largest manufacturers and distributors of fencing and
perimeter security products to the industrial and residential markets in the US.
Reeves Southeastern, which posted $122 million in revenues for fiscal year 1997,
operates 31 distribution centers in 20 states. Through its wholly-owned
subsidiary, Foreline Security, it sells and installs integrated security systems
and solutions and security monitoring services.
The tentative structure of the acquisition contemplates a purchase price of
approximately $34 million in cash and short-term notes in addition to long-term
notes of indeterminable value of up to $8 million. Completion of the transaction
is contingent upon receipt of regulatory and other closing conditions and upon
resolution of certain environmental matters. Management anticipates the
acquisition to close by the end of April 1998.
``The proposed Reeves acquisition represents a solid beginning to Diamond's
strategy to leverage its installed home improvement business infrastructure into
new markets and products,'' stated C. Stephen Clegg, Diamond Home Services'
Chairman, President and CEO. ``Reeves will provide Diamond with an extended
nationwide base in distribution and greater access to professional installers so
that we can continue to expand our installed home improvement business. In fact,
I am optimistic that by the end of 1998 our combined revenues will exceed $300
million, an important benchmark in reaching our goal of $500 million in revenue
by the year 2000. In terms of Diamond's approach to acquisitions, management
believes Reeves will meet the three minimum acquisition criteria: i) additive to
earnings; ii) positive cash flow; and iii) a proven, deep management team,'' Mr.
Clegg said.
Diamond Home Services, Inc. is a leading national marketer and contractor of
installed home improvement products, including roofing systems, gutters, doors
and fencing. The Company markets its home improvement products and services
directly to consumers primarily under the ``SEARS'' name. Through its finance
subsidiary, Marquise Financial Services Inc., the Company also offers financing
to its customers. The Company has 70 sales offices located in major cities
across the U.S., providing the Company with a presence in markets covering
approximately 80% of the owner-occupied households in the U.S.
Certain statements contained herein, including without limitation, statements
addressing the beliefs, plans, objectives, estimates or expectations of the
Company or future results or events, constitute ``forward-looking statements''
within the meaning of the Private Securities Litigation Reform Act of 1995. Such
forward-looking statements involve known or unknown risks, including, but not
limited to, general economic and business conditions, matters related to the
Sears license, warranty exposure, the Company's reliance on sales associates and
on the availability of qualified independent installers, and conditions in the
installed home improvement industry in general, in the fencing and securities
industries in particular, and the Company's ability to successfully integrate
Reeves Southeastern Corp. into its business. There can be no assurance that the
actual future results, performance or achievements expressed or implied by such
forward-looking statements will occur. Users of forward-looking statements are
encouraged to review the Company's 1996 annual report on Form 10-K, its filings
on Form 10-Q, and other federal securities law filings for description of other
important factors that may affect the Company's business, results of operations
and financial condition.
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