Management to Introduce Vision, Strategy, Expectations in Shareholder Letter Next Week
NEW YORK, July 02, 2019 (GLOBE NEWSWIRE) -- Exxe Group, Inc. (OTC PINK: AXXA), a diversified company focused on synergistic acquisitions in real estate, fintech, artificial intelligence, media and financial services, today announced the acquisition of a controlling interest in DHE Group(“DHE”), a leading Eastern Europe-based industrial real estate firm that serves as a model for future Exxe Group transactions around the world. With this first of four targeted transactions under its belt, Exxe Group is well on its way to acquiring up to $40 million worth of assets in the real estate, financial services, fintech, and other segments to be booked in the second and the third quarter of 2019 alone. Importantly, this estimated $10 million deal brings new vertical markets to the Company and offers considerable upside in the form of revenue, cross-sale and cross-utilization opportunities for current and potential Exxe Group companies, partners, and customers.
DHE Group’s key assets include industrial, storage and mixed-use space currently generating $1 million in rental income and offers considerable upside as it has not yet reached peak utilization. The primary operating unit on the property is an industrial motor vehicle parts manufacturer generating $2 million in revenue and has an estimated $1 million in inventory. The firm is currently biggest custom firm of its kind in the region and represents a new vertical generating hundreds of millions in revenue annually in Europe. Plus, this entity boasts broad distribution capabilities which the Company Group plans to leverage and exploit via other members of the Exxe Group family of companies.
Boris Matsokhin, Managing Director of Exxe Group said: “We are very excited about DHE Group joining our group and plan to leverage this synergistic asset-based, multi-function, revenue-generating asset that is poised to increase the Exxe Group capabilities. In the coming weeks we plan to use DHE as the core of the Company’s distribution arm in Eastern Europe which are already significant given acquisitions in recent quarters. Moreover, monetizing offering multi-use industrial space combined with operating assets, distribution capabilities and financial services is a disruptive model that can be replicated in other markets, going forward. As a result, we anticipate a rapid scale in this highly profitable and untapped geography. ”
Details on Latest M&A
Founded fifteen years ago, DHE operates an industrial car parts producer specializing in center discs, barrels, and rims that are sold to harvest companies, and large vehicles that is the largest company of its kind in the region. Other components of the business include monetizing of its industrial storage space via rentals as well as offering mixed-use space including office and other factory types.
The car parts production and distribution operations, which plays in an industry generating hundreds of millions in annual sales in Eastern Europe, can scale by exponential rates if provided with additional products, financial services for it and its customers/prospects that do not have this kind of access today. Plus, the operational know-how and analytics from Exxe Group management can position DHE as a the first of several regional hubs which would ensure cross-sale and cross-investment opportunities.
Exxe Group’s latest transaction serves as a model for management’s M&A and operating philosophy, along with increasing value in short order. Management identified the industrial space and storage space markets over a year ago and executed its first transaction in the space with the Swiss Storage and High Tech Center deal in July 2018. In the DHE deal, Exxe Group has an opportunity to generate meaningful revenue and operating profit through rental income via targeted industrial/factory tenants and communities that could also include companies in the family of firms in the high tech or even crypto mining arena. The traditional conversion of industrial space into mixed use space represents a market in the hundreds of millions. By providing Exxe Group companies and customers with space, access to capital, leadership, and product distribution, revenue, income and value, growth rates can be accelerated.
More M&A in Pipeline
Exxe Group has now closed an estimated $10 million of its targeted $40 million in asset acquisition. At this juncture the remaining $40 million is mostly closed and slated to be finalized during the month of July. Investors can expect management will continue to close multiple controlling interest transactions in parallel, as part of its M&A rollout strategy. later this month.
Upcoming Shareholder Letter
Next week, management plans to issue a shareholder letter outlining the Company’s current and successful strategy based on a series of functional, synergistic transactions in large, untapped markets that foster outsized growth rates under the Exxe Group umbrella. Moreover, the Company will introduce new management team members and introduce its vision which will be executed via its scaling and integration strategy. In the letter, investors will be provided a blueprint of its monetizable, asset-backed scaling strategy to date and a roadmap and goals for future M&A and market share growth. Exxe Group’s objective is to grow exponentially by blending the leverage of its asset-based businesses with its highly functioning operations in some of the world’s fastest growing industries, through its enviable management consulting and leadership.
About Exxe Group
Exxe Group is a diversified corporation focusing on acquisitions in the following sectors: real estate, technology, media, and financial services. Exxe Group is an acquisition-driven company. The Company strategy is to acquire controlling equity interests in undervalued companies and undertake an active role in improving their performance - accelerating their growth by providing both access to capital and management expertise. For additional information go to www.exxegroup.com
CONTACT: Exxe Group IR: email@example.com
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