CCA Industries, Inc. Terminates Negotiations for Proposed Acquisition of the Company by Dubilier & Company
EAST RUTHERFORD, N.J., April 10 /PRNewswire-FirstCall/ -- CCA Industries, Inc. (Amex: CAW) announced today that it has terminated negotiations relating to the proposed acquisition of the Company by Dubilier & Company. "After several months of negotiation, Dubilier & Company advised the Company that they are unable to secure financing of the transaction," David Edell, Chief Executive Officer of CCA, stated. "With the termination of negotiations toward reaching a definitive acquisition agreement, management will focus its attention on new product development and exploring other opportunities to enhance shareholder value."
The Company will release its results for the Fiscal 2007 first quarter ended February 28, 2007 within the next week. While the Company expects to report a profit for the quarter, net income for the quarter will be below that reported in the corresponding period in Fiscal 2006 and will reflect, among other things, the effect of nonrecurring expenses attributable to the failed merger transaction.
CCA Industries, Inc. manufactures and markets health and beauty aids, each under its individual brand name. The products include, principally, "Plus+White" toothpastes and teeth whiteners, "Sudden Change" anti-aging skin care products and "Scar Zone," "Nutra Nail" nail growth treatments, "Mega-T" Green Tea diet aids, "Mega-T" chewing gum, "Mega-G" diet aids, "Pound-Ex" dietary supplements, "Hair Off" hair removal and depilatories, "Bikini Zone" medicated creme and gel for the bikini area, "Solar Sense" sun protection products, and "Cherry Vanilla" Perfume.
Statements contained in the news release that are not historical facts are forward looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties, which would cause actual results to differ materially from estimated results. Such risks and uncertainties are detailed in the Company's filings with the Securities and Exchange Commission.
SOURCE CCA Industries, Inc.
Released April 10, 2007