Checkpoint Systems, Inc. Announces Definitive Agreement to Sell U.S. and Canadian CheckView Business
March 25 2013 - 8:00AM
Business Wire
Checkpoint Systems, Inc. (NYSE: CKP) today announced that
it has entered into a definitive agreement to sell its U.S. and
Canadian CheckView business to an affiliate of Platinum Equity, a
California-based private equity firm. The sale includes all
continuing business operations and assets associated with the U.S.
and Canadian CheckView business. The transaction is expected to
close by the end of April 2013.
The divestiture follows an extensive review of Checkpoint’s
businesses in 2012 at which time 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.
Checkpoint Systems’ President and Chief Executive Officer,
George Babich, said, “We are pleased to have reached an agreement.
Platinum Equity is a global investment firm with a unique focus on
business operations and a strong track record helping companies
reach their full potential. The firm’s financial resources and
operational expertise will present the CheckView business with
tremendous new opportunities. We are committed to support CheckView
throughout the sale process to ensure an orderly transition with
full continuity of service to customers.”
“We are excited about the prospects for CheckView under our
ownership,” said Platinum Equity Principal Jason Leach. “Platinum
has an extensive track record of acquiring corporate divestitures
and maximizing their potential as standalone businesses. CheckView
will act as a platform acquisition and allow us to focus on the
core business while pursuing organic growth initiatives and
strategic add-ons in a highly fragmented space.”
Checkpoint will continue to pursue its redefined strategy to
provide solutions that improve merchandise availability in retail
stores. The Company’s portfolio includes electronic article
surveillance systems and services to combat theft, radio frequency
identification products to improve inventory accuracy, and tickets,
tags and labels for merchandising apparel.
The U.S. and Canadian CheckView business was reported as
discontinued operations in Checkpoint’s fourth quarter and
full-year 2012 earnings report released on March 5, 2013 and in the
Company’s 2012 Annual Report on 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.
Platinum Equity
Platinum Equity (www.platinumequity.com) is a global
M&A&O® firm specializing in the merger, acquisition and
operation of companies that provide services and solutions to
customers in a broad range of business markets, including
information technology, telecommunications, logistics, metals
services, manufacturing and distribution. Since its founding in
1995 by Tom Gores, Platinum Equity has completed more than 145
acquisitions.
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. We do
not undertake to update our forward-looking statements, except as
required by applicable securities laws.
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