CHARLOTTE, N.C., Nov. 25 /PRNewswire/ -- PCA International, Inc.
(Nasdaq: PCAI) and American Studios, Inc. (Nasdaq: AMST) announced today that
they have entered into a nonbinding letter of intent providing for the
acquisition by PCA of American Studios for $2.50 per share in cash, subject to
the approval by the Boards of Directors of both companies. The total purchase
price offered by PCA for the approximately 21.4 million shares of American
Studios outstanding, plus assumption of debt and capital lease obligations, is
approximately $66 million.
Consummation of the transaction is subject to approval of the Boards of
Directors of both companies and execution of a definitive agreement.
Consummation of such agreement will be subject, among other things, to
obtaining required regulatory clearance, as well as other customary
conditions.
American Studios provides portrait photography services in approximately
2,000 Wal-Mart stores in the United States and Mexico. American Studios
operates approximately 850 permanent studios with traveling portrait
promotions conducted periodically in the remaining Wal-Mart stores it
services. The company also provides traveling fashion photography services in
selected Wal-Mart stores.
PCA International, Inc. provides professional portrait services in 1,574
permanent studios in the United States, Canada, and Puerto Rico. PCA
presently operates 1,375 studios in Kmart stores in the United States and
Puerto Rico; 85 studios in Wal-Mart stores in the United States, Canada, and
Puerto Rico; and 114 studios in PETsMART stores in the United States and
Canada. In a separate press release today, PCA announced its third
quarter results.
SOURCE PCA International, Inc.
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CONTACT:
Bruce A Fisher, Senior Vice President and
Chief Financial Officer, PCA International, Inc., 704-847-8011,
Ext. 2404, or Shawn W. Poole, Executive Vice President and Chief
Financial Officer, American Studios, Inc., 704-588-4351, Ext.
5310
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