CVSL And The Longaberger Company Sign Letter Of Intent For
Longaberger To Join CVSL
DALLAS and NEWARK, Ohio, Jan. 11,
2013 /PRNewswire/ -- Ohio-based The Longaberger Company and
Computer Vision Systems Laboratories Corp. (stock symbol:
CVSL) have signed a letter of intent (LOI) for CVSL to acquire
a controlling voting interest in Longaberger. According to
the LOI, Longaberger would become part of CVSL's strategy of
growing in the direct selling channel. Longaberger's revenues
last year exceeded $100
million.
"This is great news for the Longaberger Company as we celebrate
its 40th anniversary in 2013," said Tami Longaberger, President and CEO of The
Longaberger Company. "From the day my father founded our company,
it was a dream of his that someday we could give our sales force
and employees and customers the opportunity to become owners in our
company. That wasn't possible for us as a private company,
but now that dream can come true," said Ms. Longaberger.
"This opportunity also will help us continue The Longaberger
Company's momentum by giving us the prospect of access to more
capital for growth, additional resources and access to new
markets," she noted. "We've always been leaders in direct
selling. I'm thrilled that now, yet again, our company is
leading the way where others will follow. I know that Dad
would be beaming with pride."
As previously announced, Ms. Longaberger joined CVSL's board of
directors on December 3. Under the terms of the LOI
announced today, Ms. Longaberger has begun the process to convert
her shares of The Longaberger Company stock into shares of CVSL
stock, pursuant to a definitive agreement yet to be
negotiated. This conversion would give CVSL a controlling
voting interest in Longaberger and is subject to lender,
shareholder, and regulatory approvals.
CVSL's chairman is John Rochon, a
long-time leader in the direct selling industry, former chairman of
Mary Kay Inc. and former general partner of a group that at one
time was the largest shareholder in Avon Products. Mr. Rochon
is chairman of Dallas-based
Richmont Holdings, Inc. In September, Mr. Rochon announced
plans for CVSL to become a public company "docking station" for
multiple direct selling companies.
"I am excited to be part of this planned venture alongside
John Rochon, who is such an
innovative leader in direct selling," Ms. Longaberger added. "In
today's world, the strongest companies form partnerships to become
even stronger. This is the perfect partnership for us.
We see great things ahead for CVSL. By participating in the
CVSL growth strategy, the Longaberger business can gain new
advantages and resources. This is another step forward for
Longaberger during a time of major progress for us, such as our new
made in America strategy, our improved career plan and our
increased sales and recruiting results."
"Longaberger is a true gem – a great American company with five
generations of family heritage," said Mr. Rochon. "I admire
and respect Tami Longaberger and the
wonderful and unique family culture of her company. I'm very happy
that she will be helping guide us in our strategy for global
growth," added Mr. Rochon. "When the transaction closes,
Longaberger will be the first direct seller to become part of CVSL
and we look forward to additional companies joining us."
Mr. Rochon emphasized that Longaberger will keep its own
identity as part of CVSL. "Everything that makes Longaberger
unique will continue, and Tami will continue to lead
Longaberger."
The Longaberger Company sells premium hand-crafted baskets made
in Ohio and a line of products for
the home, including pottery, as well as gourmet foods, through a
nationwide network of independent sales representatives.
In July, Ms. Longaberger announced at the company's national
sales convention that Longaberger would transition to a fully
American-made product line.
The Direct Selling News named Ms. Longaberger in its October
cover story as one of "the Most Influential Women in Direct
Selling." Last year, the Longaberger Company was honored with
a Stevie Award for Women in Business as "Best Overall Company of
the Year."
Cautionary Note Regarding Forward-Looking Statements:
This press release contains forward-looking statements that
involve risks and uncertainties. All statements other than
statements of historical fact contained in this press release,
including statements regarding future events, our future financial
performance, business strategy, and acquisitions strategy, and our
plans and objectives for future operations, are forward-looking
statements. We have attempted to identify forward-looking
statements by terminology including "anticipate," "believe," "can,"
"continue," "could," "estimate," "expect," "intend," "may," "plan,"
"potential," "predict," "project," "should," or "will" or the
negative of these terms or other comparable terminology. Although
we do not make forward-looking statements unless we believe we have
a reasonable basis for doing so, we cannot guarantee their
accuracy. These statements are only expectations and involve known
and unknown risks, uncertainties and other factors, including the
risks outlined under "Risk Factors" in our Annual Report on Form
10-K for our fiscal year ended December 31,
2011 and in our Form 8-K filed on October 1, 2012 and those discussed in other
documents we file with the Securities and Exchange Commission,
which may cause our actual results, levels of activity, performance
or achievements expressed or implied by these forward-looking
statements to differ materially from expectations. Except as
required by law, we undertake no obligation to update or revise
publicly any of the forward-looking statements after the date of
this press release to conform our statements to actual results or
changed expectations.
SOURCE Computer Vision Systems Laboratories Corp.