Coelco Buys Irvine Firm, Set To Acquire 6 Others

Continuing its acquisition binge, Coelco Ltd., a diversified Fountain Valley company, Thursday announced the purchase of one company and six additional tentative takeovers.

Coelco President David Sterns said the seven acquisitions are expected to cost a total of $40 million and would increase the company’s revenues, now running at $35 million annually, to $163 million.

In the one completed purchase announced Thursday, Coelco swapped its Graphics Network International Inc. subsidiary for a 70% stake in Novar International Corp., an Irvine firm involved in commercial printing, leasing and commercial real estate development. In addition to those activities, Novar is in the advanced stages of acquiring a speciality steel maker with projected annual revenues of $55 million.

Sterns valued the Novar stock swap at between $500,000 and $750,000.

The deal marks Coelco’s 11th acquisition since July and its seventh since December. In all, the company has paid about $11 million to assemble a wide variety of companies under its corporate umbrella.

Coelco also signed tentative agreements to buy Gemini Tube Fabrications Inc. in Corona, a manufacturer of auto and motorcycle engine components and Formula I in Huntington Beach, a manufacturer and distributor of auto-care products. Sterns said the Gemini acquisition would be made in the form of a stock swap valued at $1 million with the Formula I purchase to be made for about $500,000 in cash.

According to Sterns, the remaining four companies involved in purchase discussions include two auto equipment firms with estimated combined revenues of $110 million, an equipment-leasing operation with more than $21 million in revenues last year and a venture capital and brokerage firm.

Sterns declined to reveal the companies, noting that at least two have been highly sought-after and identification could be an invitation to competitive bidding.

Sterns, who acquired controlling interest in Coelco last April, said his goal is to create a Fortune 500 conglomerate within five years.