Checkpoint Systems, Inc. Announces Completion of Shore to Shore, Inc. Acquisition
May 17 2011 - 7:47AM
Business Wire
Checkpoint Systems, Inc. (NYSE: CKP) today announced that
it has completed the acquisition of Shore to Shore, Inc., including
the Adapt Group and related assets. Shore to Shore, headquartered
in Centerville, Ohio, is a global retail apparel and footwear
product identification business with production locations in 13
countries. The company designs, manufactures and sells a full line
of merchandise identification products including hang tags, price
tickets, printed paper tags, pressure sensitive products, woven
labels, leather and leather-like labels, heat transfer labels and
brand protection and EAS solutions/labels.
The initial purchase price for the all cash acquisition will be
$62.95 million less any debt. A contingent purchase price payment
of up to $23.75 million may be made if certain financial results
are realized for the calendar year ended December 31, 2010, pending
post closing verification.
Checkpoint expects Shore to Shore revenues for 2011 to be in the
range of $60 million to $65 million. The transaction, excluding
transaction expenses, is expected to be accretive to earnings this
year.
The acquisition of Shore to Shore is a further step in
Checkpoint’s strategy to become the recognized number two global
provider of apparel labeling solutions and places Checkpoint
significantly closer to its goal of growing the revenue of the
Apparel Labeling Solutions business to over $400 million.
Checkpoint Systems, Inc.
Checkpoint Systems is a global leader in shrink management,
merchandise visibility and apparel labeling solutions. Checkpoint
enables retailers and their suppliers to reduce shrink, improve
shelf availability and leverage real-time data to achieve
operational excellence. Checkpoint solutions are built upon 40
years of RF technology expertise, diverse shrink management
offerings, a broad portfolio of apparel labeling solutions,
market-leading RFID applications, innovative high-theft solutions
and its Web-based Check-Net® data management platform. As a result,
Checkpoint customers enjoy increased sales and profits by improving
supply-chain efficiencies, by facilitating on-demand label printing
and by providing a secure open-merchandising environment enhancing
the consumer’s shopping experience. For more information, visit
www.checkpointsystems.com.
Caution Regarding Forward-Looking
Statements
This press release includes information that constitutes
forward-looking statements. Forward-looking statements often
address our expected future business and financial performance, and
often contain words such as “expect,” “anticipate,” “intend,”
“plan,” “believe,” “seek,” or “will.” By their nature,
forward-looking statements address matters that are subject to
risks and uncertainties. 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: satisfaction of applicable closing
conditions in our agreement to acquire the Shore to Shore business;
amendments to the Shore to Shore purchase agreement prior to
closing; our ability to integrate this and other acquisitions and
to achieve our financial and operational goals for our
acquisitions; changes in international business conditions; foreign
currency exchange rate and interest rate fluctuations; lower than
anticipated demand by retailers and other customers for our
products; slower commitments of retail customers to chain-wide
installations and/or source tagging adoption or expansion; possible
increases in per unit product manufacturing costs due to less than
full utilization of manufacturing capacity as a result of slowing
economic conditions or other factors; our ability to provide and
market innovative and cost-effective products; the development of
new competitive technologies; our ability to maintain our
intellectual property; competitive pricing pressures causing profit
erosion; the availability and pricing of component parts and raw
materials; possible increases in the payment time for receivables
as a result of economic conditions or other market factors; changes
in regulations or standards applicable to our products; the ability
to implement cost reduction in field service, sales, and general
and administrative expense, and our manufacturing and supply chain
operations without significantly impacting revenue and profits; our
ability to maintain effective internal control over financial
reporting; risks generally associated with our company-wide
implementation of an enterprise resource planning (ERP) system and
additional matters disclosed in our Securities and Exchange
Commission filings. We do not undertake to update our
forward-looking statements, except as required by applicable
securities laws.
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