Checkpoint Systems, Inc. Announces Intention to Sell U.S. and Canadian CheckView® Business
March 04 2013 - 6:07PM
Business Wire
Checkpoint Systems, Inc. (NYSE: CKP) today announced the
Company’s intention to sell its U.S. and Canadian CheckView
business. Following an extensive review of Checkpoint’s portfolio
in 2012, the Company’s Board of Directors determined that the U.S.
and Canadian CheckView® business will better serve its customers as
an independent, entrepreneurial and more focused organization.
An investment banker has been engaged to assist in the sale and
discussions are taking place with a potential buyer interested in
leveraging the expertise, customer relationships, retail monitoring
center and other assets residing in CheckView in a strong and
nimble stand-alone platform.
Checkpoint will continue to pursue its redefined strategy to
provide solutions that improve merchandise availability in retail
stores. This planned divestiture is expected to enable focused
attention and investment in both the CheckView business and
Checkpoint’s core businesses. Checkpoint is committed to support
CheckView® throughout the sale process and the CheckView® team is
100% committed to ensure an orderly transition with full continuity
of service to customers.
The U.S. and Canadian CheckView business will be reported as
discontinued operations in Checkpoint’s fourth quarter and
full-year 2012 earnings report scheduled to be released tomorrow
prior to the Company’s scheduled earnings conference call and in
the Company’s 2012 Form 10-K.
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 more
than 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.
Forward-Looking Statement
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: the impact upon operations of legal
compliance matters or internal controls review, improvement and
remediation, including the detection of wrongdoing, improper
activities, or circumvention of internal controls; our ability to
integrate 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 successfully implement
global cost reductions in operating expenses including, 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; and additional matters
disclosed in our Securities and Exchange Commission filings. In
addition, we have announced an intention to sell our U.S. and
Canadian CheckView business. There can be no assurance, however,
that we will be able to sell this business on terms and at a time
we believe to be acceptable, or at all. We do not undertake to
update our forward-looking statements, except as required by
applicable securities laws.
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