Apex CEO/President Joseph Kirchner announced today that the
company completed its second private placement in the past year.
In exchange for a minority interest in the company, Apex has
raised $60M of capital which provides for major growth
opportunities for the company. In addition to the $60M in
capital, Apex also has bank lines of around $50M. The $60M in
new capital allows the company to fund its sales growth, expand
its production in Hong Kong, build its international business and
increase its involvement in strategic promotional ventures.
Kirchner: "For Apex to continue competing in the highly-
competitive arena of professional and college athletics -- as
well as fulfilling retail demand of its product -- an additional
infusion of capital was needed" (APEX).
Coca-Cola Co. reported a 20% increase in 3rd quarter net
income "reflecting stronger-than-expected gains in overseas sales
volume. The results, "which were in line with analysts'
expectations, reflect a solid performance in international
markets, which account for about 80% of Coke's earnings." Volume
overseas was up 17%, exceeding the company's earlier projection
of a 14% gain for the quarter (Laurie Grossman, WALL STREET
JOURNAL, 10/21). Coke also credited new advertising, promotions
and new packaging, "including the plastic version of its classic
curvy bottle" (Cynthia Mitchell, ATLANTA CONSTITUTION, 10/21).
COMPETITION IN JAPAN: "NBR's" Lucy Graft called '94
"another banner year" for Coca-Cole in Japan, but reported on
potential threats to the company's Japanese market-share from
"cheap, private cola imported from the U.S" ("Nightly Business
Report," PBS, 10/20).
Walt Disney Co. announced it has completed the sale of 74.6M
shares of stock in Euro Disney SCA, operator of the "beleaguered
theme park" near Paris, to Saudi Prince Alwaleed bin Talal.
Disney's stake falls to 40% from 49%. The Prince's stake rises
to 24.6% (WASHINGTON TIMES, 10/21).
MORE FROM THE MOUSE: Fruit of the Loom announced that its
European subsidiary, Fruit of the Loom International, Ltd., has
entered into a three-year licensing agreement with Disney
Consumer Products International, Inc., a subsidiary of The Walt
Disney Company. Fruit of the Loom-Europe will offer a variety of
casualwear apparel products bearing the world famous Disney
characters (Fruit of the Loom).
McDonald's Corp. announced record results for the nine
months and third quarter ended September 30. Driven by expansion
and "value," McDonald's global foodservice business continued to
show growth in '94. Net income and net income per common share
increased 12 and 14%, for the nine months; and 13 and 14% for the
quarter. A total of 672 restaurants were added in '94,
including 280 in the U.S. and 392 outside the U.S (McDonald's).
The Univ. of Michigan and Nike have agreed to a $7M-plus
endorsement contract -- "the largest such deal in the history of
collegiate sports," according to Michigan AD Joe Roberson. Nike
outbid Reebok to become the "exclusive on-field supplier to all
22 Wolverines men's and women's sports." The endorsement fee
will be added to the over $300,000 in cash and goods Nike already
pays Michigan coaches and other athletic officials. Nike will
have the exclusive rights to design uniforms and sell apparel
with the Michigan logo. The deal runs through 2000. SPECIFICS:
Nike will give the school around $1M in shoes and apparel, make a
$75,000 cash payment to the athletic program, endow two
scholarships in women's athletics, fund a yearlong fellowship in
sports journalism, and pay $45,000 into a scholarship endowment
begun by Chris Webber. Roberson said he approached both Nike and
Reebok (Falls & Girard, DETROIT NEWS, 10/20). Columnist Joe
Falls notes Michigan will also "benefit from the TV, magazine,
and newspaper ads Nike will put out to exploit its connection
with one of the nation's top athletic programs." Nike gets to
"cash in on a school that is probably the most widely televised"
in the country (DETROIT NEWS, 10/20).
With the hope of reviving cycle track racing as a domestic
spectator sport, John Vande Velde, an Olympic track racer, and
P.T. Ferro Construction Company, based in Joliet, IL, have built
the first short cycling track "of its kind in the U.S. and the
only portable track in the world." Steve Penny of the U.S.
Cycling Federation: "Cycling's at an all-time high right now.
And there has been a lot of talk about building a portable
velodrome the past few years. The time is right because of A,
our recent success in the world championships and B, with the
Olympics coming, we'll be able to showcase what we have. People
are more used to an indoor venue for sporting events." The new
track was designed specifically for indoor use and features a 52-
degree slope. Bicycle historian Jim Hurd: "I think bicycle
racing in America will take off in the next couple of years. I
think it will increase in popularity as mountain biking continues
to be so popular; there will be some crossover." Van Velde has
scheduled a team racing event for the Rosemont Horizon on April
29, 1995 (Julie Hanna, CHICAGO TRIBUNE, 10/21).