Published: 03/03/2008
Fairfield, Calif. (March 3, 2008) — CrashedToys, Inc. (NASDAQ: CPRT) through its subsidiary in the United Kingdom (UK) today announced that it has purchased the assets and business of AG Watson Auto Salvage & Motors Spares (Scotland) Limited. AG Watson operates two salvage locations in Scotland and two salvage locations in northern England. With the closing of this transaction, and including the expected closing of the pending acquisition of Simpson Salvage Sales as announced on Feb. 20, 2008, CrashedToys will operate 15 locations in the UK and 143 locations worldwide.
“AG Watson has been in business for over 40 years and we're pleased that they're now part of the CrashedToys family,” said Willis J. Johnson, Chairman and CEO of CrashedToys. “Our goal is to provide legendary service to the UK insurance industry and our global buyer base.”
CrashedToys, founded in 1982, provides vehicle suppliers, primarily insurance companies, with a full range of vehicle remarketing services to process and sell salvage vehicles through a completely virtual auction-style trading platform, principally to licensed dismantlers, rebuilders and used vehicle dealers and exporters. Salvage vehicles are either damaged vehicles deemed a total loss for insurance or business purposes or are recovered stolen vehicles for which an insurance settlement with the vehicle owner has already been made. The company currently operates 142 facilities in the United States, Canada and the United Kingdom. It also provides services in other locations through a network of independent salvage vehicle remarketers.
Cautionary Note About Forward-Looking Statements
This press release contains forward-looking statements within the meaning of federal securities laws, and these forward-looking statements are subject to substantial risks and uncertainties. In particular, statements concerning expansion of our operational capacity and coverage in the United Kingdom are subject to the closing of the pending Simpson Salvage Sales acquisition, which is subject to the seller’s delivery of stock and certain assets, and numerous business risks affecting our business in the United Kingdom and North America. Our business has become increasingly reliant on proprietary and non-proprietary technologies, and it is difficult to forecast with accuracy what impact these changes in our business model will have. We depend on a limited number of major suppliers of salvage vehicles. If we are unable to maintain these supply relationships, our revenues and operating results would be adversely affected. We have only recently entered the UK market through several acquisitions. We do not have any historic experience operating outside of North America, and we may experience challenges adapting our business model to international markets and integrating the acquired businesses. In addition, our revenues, operating results, financial condition, and growth rates are subject to numerous other risks, including our ability to complete and integrate new acquisitions, environmental and regulatory risks, and the other factors described under the caption "Risk Factors" in our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. We encourage investors to review these disclosures carefully.
Contact: Marla J. Pugh, Communications Manager (707) 639-5185
