Arthur Treacher’s Inc. Fish & Chips, a wholly-owned subsidiary of Digital Creative Development Corporation (DC2) (OTC Bulletin Board: DCDC), today announced that it has entered into a definitive agreement to acquire Pudgie’s Famous Chicken. The acquisition is an all-stock transaction. Specific financial terms of the transaction were not disclosed.
Under the terms of the agreement, Arthur Treacher’s will acquire the stock of Pudgie’s and its affiliates. In addition, Arthur Treacher’s will close its corporate headquarters in Jacksonville, FL and consolidate all corporate functions into Pudgie’s Famous Chicken’s headquarters located in Lake Success, NY. Current Pudgie’s Chief Executive Officer, Jeffrey Bernstein, will assume the role of CEO of the combined company.
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“The acquisition of Pudgie’s is inline with the previously announced reorganization of Arthur Treacher’s,” said Bruce Galloway, Chairman of Arthur Treacher’s. “Pudgie’s strengthens Arthur Treacher’s in several ways. First, we are already entered into an extremely successful multi-location co-branding agreement with Pudgie’s and believe this will further strengthen the chains operations. Chicken and fish are complimentary and co-branding is the key to success for small independent brands as proven by Arthur Treacher’s highly successful co-branding with Miami Subs, Corp. and Nathan’s Famous Hot Dogs. Next, the transaction gives us the opportunity to strategically grow the brand name of both companies. Finally, the combined operations create a valuable asset which DC2 plans to spin-off into the public equity marketplace.”
Ralph Sorrentino, CEO of DC2 stated, “This transaction is part of our strategy to ultimately spin-out the restaurant group with DC2 becoming a pure entertainment company.”
Mr. Bernstein added, “We have spent the past two and a half years building a highly specialized and successful food chain. The combination of these two sets of operations will exploit the apparent synergies necessary to continue to grow the new company. Building on and expanding our current co-branding relationship will enable us to generate value for our new shareholder base.”
About Pudgie’s Famous Chicken
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By GlobalDataHeadquartered in Lake Success, NY, Pudgie’s Famous Chicken currently operates 32 fast food locations in the New York metropolitan area. Pudgie’s Famous Chicken focuses on premium skinless chicken. The company has a strong commitment to its franchise owners, including the finest training and the best operational and marketing support available.
About Arthur Treacher’s Fish & Chips
Arthur Treacher’s is a wholly-owned subsidiary of Digital Creative Development Corp. The Subsidiary is a fast service seafood restaurant chain. Presently, Arthur Treacher’s consists of 161 restaurants, including 26 Company-owned restaurants and 61 independently owned and operated franchised locations and 74 franchise restaurants co-branded with Miami Subs, Corp., Nathan’s Famous Hot Dogs and Pudgie’s Famous Chicken. The restaurants are located in 13 states in the mid-western and eastern United States as well as in Washington D.C. and Ontario, Canada.
About Digital Creative Development Corporation
Digital Creative Development Corporation’s strategy is to acquire and invest in entertainment content companies, with a focus on broadband content delivery, and to provide a comprehensive array of Internet-related business-to-business services. The Company also operates the Arthur Treacher’s restaurant chain as a separate unit.
Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties, such as quarterly fluctuations in operating results, the timely availability of new products, financing risks, the impact of competitive products and pricing, and other risks detailed in filings with the Securities and Exchange Commission, including the Arthur Treacher’s Inc. Form 10-K for the fiscal year ended June 30, 1999. These risks and uncertainties could cause actual results to differ materially from any forward-looking statements made in this press release.
