Checkpoint Systems, Inc. (NYSE: CKP), have announced that it has acquired ADS Worldwide (ADS). Total consideration for the business will be in the form of cash and will be approximately $8.5 million, plus closing costs.
Based in Hull, England, ADS is an established supplier of tags, labels, and trim to apparel manufacturers, retailers and brands around the world. With operations in the UK, Hong Kong, China, India and Turkey, ADS employs more than 235 people worldwide. ADS provides Checkpoint with new technological and production capabilities in the United Kingdom, China and Turkey, and extends its network of global print-shops. The acquisition is expected to add more than $20 million of revenue in 2007 and be neutral to slightly accretive to earnings per share, due to integration costs in the first year and purchase accounting.
George Off, Chairman and Chief Executive Officer of Checkpoint, commented, The acquisition of ADS is in line with our strategy to grow our CheckNet service bureau business to create increased value for our customers and shareholders. This transaction underlines Checkpoints continued commitment to premium source tagging solutions for the global retail apparel industry. ADS has an outstanding customer base and a longstanding commitment to excellence in its product offerings and services. Our combined operations will provide customers with advanced data management and logistics capabilities across our expanded service bureau network and further enhances our Electronic Article Surveillance (EAS) source tagging program.
ADS President Simon Winstanley stated, The sale to Checkpoint will enable ADS customers to continue receiving the quality service that they have been used to, while benefiting from an expanded global network of locations and technologies including integrated RF-EAS labels and laser printing. ADS will also benefit from Checkpoints significant investments in technologies such as RFID.
About ADS Worldwide
ADS is an established supplier of apparel packaging to clothing manufacturers, retailers and brands around the world. Founded in 1988 to exploit the growing demand for the barcode, ADS has grown rapidly over recent years to become one of the largest independent suppliers in the UK. With wholly owned subsidiaries in the UK, Hong Kong, China, India and Turkey as well as long-standing partners in Mauritius and Cyprus ADS provides retailers and brands with a global service for all of their packaging requirements. Products supplied include swing tickets, waist riders, self-adhesive labels, printed care labels, woven labels and plastic seals, as well as other specialist packaging and trims. Perhaps best known for the ability to process and print variable barcode information using powerful software-based systems, ADS has a specialist division (ADS Solutions) handling the development of all production/data processing software as well as the companys sophisticated on-line ordering and tracking facilities.
About Checkpoint Systems
Checkpoint Systems, Inc. is a multinational manufacturer and marketer of integrated systems solutions for retail security, labelling, and merchandising. Checkpoint is a leading provider of EAS and RFID systems, source tagging, hand-held labelling systems and retail merchandising systems. Applications include automatic identification, retail security and pricing, and promotional labels. Operating directly in 30 countries, Checkpoint has a global network of subsidiaries and provides professional customer service and technical support around the world.
Safe Harbor Statement
This press release may include information that could constitute forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. Any such forward-looking statements may involve risk and uncertainties that could cause actual results to differ materially from any future results encompassed within the forward-looking statements. Factors that could cause or contribute to such differences include those matters disclosed in the Company's Securities and Exchange Commission filings. Checkpoint Systems Inc. undertakes no obligation to update or revise any forward-looking statements to reflect events or circumstances that may arise after the date of this report.