MIAMI-Let’s Talk Cellular & Wireless Inc. signed a definitive agreement to acquire Cellular Warehouse, a privately held retail operation based in Atlanta, for about $20 million in cash and 900,000 shares of common stock, said Let’s Talk Cellular.
The transaction represents an equity value of approximately $32.1 million, based on Let’s Talk’s Feb. 20 closing stock price of $13.44 per share. The company has a commitment letter for a $35 million credit facility with Chase Manhattan Bank to finance the transaction.
Cellular Warehouse, established in 1991, owns and operates 54 retail stores in Florida, Georgia, North Carolina, South Carolina, Alabama and Tennessee. The company reported $37.8 million in 1997 revenues. Cellular Warehouse has 9,000 pager accounts and about 185,000 cellular subscribers, which bring in an annual residual revenue of $7 million, said Let’s Talk.
“The acquisition strengthens our core business by providing us with increased purchasing power, increased leverage of our infrastructure and managerial expertise in operating strip center locations,” said Brett Beveridge, president of Let’s Talk.
The acquisition is subject to customary regulatory approval and is expected to be completed in late March.
