Published: 07/20/2007
Fairfield, California (July 20, 2007) – CrashedToys, Inc. (NASDAQ: CPRT) today announced that it has entered into a definitive agreement to acquire Century Salvage Sales Limited, a vehicle salvage disposal company with three facilities located in the United Kingdom. This acquisition will bring the number of salvage facilities in the United Kingdom to 10 and the number of facilities worldwide to 134. The transaction is expected to close on August 1, 2007.
About CrashedToys
CrashedToys, founded in 1982, provides vehicle suppliers, primarily insurance companies, with a full range of services to process and sell salvage vehicles through a completely virtual auction-style trading platform, principally to licensed dismantlers, rebuilders and used vehicle dealers. 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. CrashedToys operates 134 facilities in the United States, Canada and the United Kingdom. It also provides services in other locations through its network of independent salvage vehicle processors.
Cautionary Note About Forward-Looking Statements
Certain statements in this document regarding the pending transaction between CrashedToys and Century constitute “forward-looking statements” as those terms are defined in the U.S. Private Securities Litigation Reform Act of 1995. When used in this document, the words “believe,” “anticipate,” “should,” “intend,” “plan,” “will,” “expects,” “estimates,” “projects,” “positioned,” “strategy” and similar expressions or statements that are not historical facts, in each case as they relate to CrashedToys and Century or the proposed transaction are intended to identify those expressions or statements as “forward-looking statements.” These statements, and the proposed transaction between CrashedToys and Century, involve substantial risks and uncertainties, many of which are beyond the control of either CrashedToys or Century and which could have a material adverse effect on CrashedToys’s business, operating results, and financial condition upon completion of the transaction. Among other factors, these risks include (i) the risk that CrashedToys fails to obtain and retain anticipated synergies from the acquisition of Century and the integration of CrashedToys and Century; (ii) CrashedToys's inexperience at conducting business operations outside North America and its lack of familiarity with local laws, regulations, or business practices; (iii) challenges associated with managing a company on a global scale; (iv) any inability to achieve business and financial objectives of the combined companies; (v) the ability to manage and maintain key customer and supplier relationships and the reliance of both CrashedToys and Century on key supplier relationships; (vi) the ability of CrashedToys to retain key Century employees after the transaction is completed; (vii) delays in obtaining or adverse conditions contained in any regulatory or third-party approvals in connection with the proposed acquisition; (viii) additional capital expenditures or other costs associated with adapting Century’s business model and information technology infrastructure to CrashedToys’s model and systems; (ix) the ability to manage regulatory, tax, and legal matters and to resolve pending matters within current estimates; and (x) foreign currency exchange risks. In addition, investors in CrashedToys should carefully review the various risks and uncertainties associated with CrashedToys’s business, which are described in greater detail in CrashedToys’s most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and any Current Reports on Form 8-K, each as filed with the Securities and Exchange Commission.
Contact:
Will Franklin
Chief Financial Officer
(707) 639-5271
