UNITED STATES
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
December 30, 1996 Commission File Number 0-13875
(Date of earliest event reported)
LANCER CORPORATION
(Exact name of registrant as specified in its charter)
Texas 74-1591073
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
235 West Turbo, San Antonio, Texas 78216
(Address of principal executive offices) (Zip Code)
Registrants telephone number, including area code: (210) 344-3071
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Item 5. Other Events.
On December 30, 1996, the Registrant entered into an agreement with
PanAmerican Beverages, Inc. (PANAMCO) to acquire all of the outstanding common
shares of Comercial Vila Formosa, Ltda. (Formosa), a Brazilian-based
manufacturer and distributor of soft drink fountain and beer dispensing
equipment, and related accessories, from Spal Industrias Brasileira de Bebidas,
S/A (SPAL), a Sao Paulo, Brazil based soft drink bottler. The acquisition was
completed through a newly formed Sao Paulo based wholly-owned subsidiary of the
Registrant, Lancer do Brasil, Ltda.
The acquisition of Formosa is for cash and other consideration valued at
approximately $6 million, including approximately $4 million of seller
obligations payable in equal installments over five years and bearing interest
floating with, and based upon, London InterBank Offering Rates (LIBOR).
As part of the agreement, the Registrant and its subsidiaries have entered
into a supply arrangement with PANAMCO and its subsidiaries for a period of not
less than five years.
Formosa reported sales of approximately $13.6 million for the fiscal year
ended December 31, 1996. The acquisition will partially be funded by borrowings
of $2 million against an existing credit facility specifically established for
acquisitions with the Registrants primary lenders. Final settlement of the
transaction will occur on February 28, 1997. The acquisition will be accounted
for by the Registrant as a purchase.
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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.
LANCER CORPORATION
(Registrant)
January 14, 1997 By: /s/ George F. Schroeder
George F. Schroeder
President and CEO
January 14, 1997 By: /s/ John P. Herbots
John P. Herbots
Chief Financial Officer
