M&A Activity • Jul 3, 2008
M&A Activity
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Venlo, The Netherlands / Fiskeville, USA, July 3, 2008 - Océ N.V. (www.oce.com), an international leader in digital document management, today announced it has signed a contract to sell the coating-related assets of its wholly-owned subsidiary Arkwright Inc. to the prominent Italian paper and coated media manufacturer Diatec Group (www.diatecgroup.com).
Arkwright Inc., based in Fiskeville (Rhode Island), was founded in 1810. It is a technology-driven company that develops, coats, converts and markets high performance digital imaging materials to consumer and commercial segments. Arkwright runs a European sales outlet from The Netherlands in addition to its US operations.
By acquiring Arkwright's coating assets, Diatec Group adds a US media coating footprint to its European media coating activities. Océ will continue to sell print media, a strategic cornerstone of Océ's hardware business.
Arkwright Inc. and Arkwright Europe B.V. generate annualized sales of approximately USD 65 million (EUR 45 million) and employ over 200 associates, expected to transfer to the Diatec Group. Océ sells approximately € 27.4 million assets.The net cash flow expected from this transaction is EUR 17.3 million. Its anticipated impact on operating income is minus EUR 4.3 million, in addition to minus EUR 18.0 million in the form of currency translation differences that had to date been included under group equity in the balance sheet.
Under IFRS, the translation differences that relate to the activities being sold are charged to the income statement. The transfer of the coating activity in the United States will take place in the third quarter. The European activities will be transferred later this year.
Commenting on the transaction, Océ Chief Executive Officer Rokus van Iperen said: 'At Océ, our strategy focuses on strengthening distribution power, innovating our product and service portfolio and enhancing operational excellence. After serious reflection, we concluded that media coating is no longer a core activity of Océ. In recent years, we have concluded several transactions with the Diatec Group. The divestment announced today further supports the existing business relationship between our companies. We are delighted that the coating activities of Arkwright have been acquired by a strategic partner able to generate new growth opportunities.'
Océ N.V. July 3, 2008
Océ is one of the world's leading providers of document management and printing for professionals. The broad Océ offering includes office printing and copying systems, high speed digital production printers and wide format printing systems for both technical documentation and color display graphics. Océ is also a foremost supplier of document management outsourcing. Many of the Fortune Global 500 companies and leading commercial printers are Océ customers. The company was founded in 1877. With headquarters in Venlo, The Netherlands, Océ is active in over 90 countries and employs some 24,000 people worldwide. Total revenues in 2007 amounted to EUR 3.1 billion. Océ is listed on Euronext in Amsterdam. For more information on Océ, visit www.oce.com.
| For more information, please contact Océ N.V.: | |
|---|---|
| Investor Relations: | Press: |
| Carlo Schaeken | Jan Hol |
| Vice President Investor Relations | Senior Vice President Communications |
| Telephone +31 77 359 22 40 | Telephone+31 77 359 2000 |
| E-mail: [email protected] | E-mail: [email protected] |
This report contains information as meant in article 5:59 jo. 5:53 of the Dutch "Law on financial supervision" (Wet op het financieel toezicht).
Forward-looking statements, which can form a part of this report refer to future events and may be expressed in a variety of ways, such as 'expects, 'projects', 'anticipates', 'intends' or other similar words.
Océ N.V. ("Océ") has based these forward-looking statements on its current expectations and projections about future events. Océ's expectations and projections may change and Océ's actual results, performance or achievements could be significantly different from the results expressed in or implied by these forward-looking statements based on various important factors, risks and uncertainties which are neither manageable nor foreseeable by Océ and some of which are beyond Océ's control.
When considering these forward-looking statements, one should keep in mind these risks, uncertainties and other cautionary statements made in this report or in Océ's other annual or periodic filings.
For a more detailed discussion of these not limited factors, risks and uncertainties that may affect Océ's actual results, performance or achievements, reference is made to the annual report and any other publications made by Océ.
Given these uncertainties no certainty can be given about Océ's future results or financial position. We advise you to be careful with Océ's forward-looking statements, which speak only as of the date on which the statements are made. Océ is under no obligation to update or revise publicly any forward-looking statement, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.
P.O. Box 101, 5900 MA Venlo, the Netherlands, telephone # 31 77 359 2240 Trade register Venlo number 12002283 Océ investor information on Internet: http://www.investor.oce.com
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