MOD-PAC CORP. Expands Direct Mail Solutions for Commercial Print Offering
May 02 2007 - 5:25PM
Business Wire
MOD-PAC CORP. (NASDAQ: MPAC), a commercial on demand printer and
manufacturer of custom paper board packaging, today announced that
it has acquired certain assets of DDM-Digital Imaging, Data
Processing and Mailing Services, LC (DDM) for $850,000 in cash. DDM
provides program and database management, variable imaging printing
and mailing services for the financial services, marketing,
advertising, medical and legal industries. DDM operates with the
procedures and controls necessary for it to handle secure document
mailings for the financial and legal markets, a key market for
future growth. For the last four consecutive years, DDM has been
awarded Inc.�s Inner City 100 list that recognizes the fastest
growing private urban businesses in the United States. MOD-PAC
expects that this transaction will not materially impact earnings
over the next twelve months and will be accretive during the second
year as activity ramps up. Daniel G. Keane, President and CEO of
MOD-PAC CORP., commented, �The direct mail expertise, capabilities,
market knowledge, and technology that we are acquiring from DDM are
highly complementary to our core competency of high quality, short
run variable print and fulfillment. Our strategy has been to expand
our capabilities to offer a broader solution set for our customers.
This transaction extends our reach into new markets and customers
and measurably enhances our service offerings.� Carl Falletta, who
founded DDM in 1998, will be joining MOD-PAC�s sales team. Mr.
Falletta, who has over 10 years experience in the print,
fulfillment and data management industry, earned his finance and
MBA degrees from Canisius College. He is also a graduate of the
University of Dayton�s Center for Competitive Change Lean
Manufacturing learning series which is based on the Toyota
Production System. DDM�s production equipment, information
technology capabilities and a number of employees located in
Buffalo, NY will relocate to MOD-PAC�s facility. Mr. Keane added,
�Carl and his team are a great addition to our operation. Carl has
managed mailing and fulfillment services projects for companies
such as RR Donnelly & Sons Co. (NYSE: RRD) and Quebecor World
Inc. (NYSE: IQW). The experience and knowledge Carl and his team
have in postal regulations, intelligent mail, and project and
database management are value propositions for prospective
customers and truly provide a unique service capability for us. We
envision a smooth integration over the next several months and the
opportunity to win new business.� Mr. Falletta commented, �MOD-PAC
has valuable print capacity and economies of scale that will
greatly benefit our current and prospective customers. MOD-PAC�s
proven capabilities to produce small variable print orders in high
volumes combined with our capability in database management and
postal regulations will allow us to effectively compete in our new
target markets.� ABOUT MOD-PAC CORP. MOD-PAC CORP. is a high
value-added, on demand print services firm operating a unique
low-cost business model. MOD-PAC leverages its capabilities to
innovate and aggressively integrate technology into its marketing,
order in-take and production operations to provide
economically-priced, short run, on demand full-color commercial and
folding carton print products and services. MOD-PAC, through its
large, centralized facility, has captured significant economies of
scale by channeling large numbers of small-to-medium-sized print
orders through its operations. MOD-PAC�s key differentiator is its
success at being a just-in-time producer of short-run, quality on
demand print products. Through its lean manufacturing processes
coupled with state-of-the-art printing technologies, MOD-PAC is
able to address short-run, highly variable content needs of its
customers with short turn around times relative to industry
standards. MOD-PAC�s strategy is to expand its market share by
leveraging its capabilities and expanding its service offering to
capture a greater share of the print value chain to meet the
growing customized needs of its customers. Additional information
on MOD-PAC can be found at its website: http://www.modpac.com Safe
Harbor Statement: This press release contains forward-looking
statements within the meaning of Section 21E of the Securities
Exchange Act of 1934, as amended. One can identify these
forward-looking statements by the use of the words such as
"expect," "anticipate," "plan," "may," "will," "estimate" or other
similar expressions. Because such statements apply to future
events, they are subject to risks and uncertainties that could
cause the actual results to differ materially. Important factors,
which could cause actual results to differ materially, include
market events, competitive pressures, changes in technology,
customers preferences and choices, success at entering new markets,
the execution of its strategy, marketing and sales plans, the rate
of growth of internet related sales, the effectiveness of
agreements with print distributors and other factors which are
described in MOD-PAC�s annual report on Form 10K on file with the
Securities and Exchange Commission. The Company assumes no
obligation to update forward-looking information in this press
release whether to reflect changed assumptions, the occurrence of
unanticipated events or changes in future operating results,
financial conditions or prospects, or otherwise.
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