Platinum Equity to Acquire Pitney Bowes’ Global Production Mail Business
April 30 2018 - 9:00AM
Business Wire
Pitney Bowes Inc. (NYSE:PBI), a global technology company that
provides commerce solutions in the areas of shipping and mailing,
data, and ecommerce, today announced that Platinum Equity has
signed a definitive agreement to acquire the Company’s Document
Messaging Technologies (DMT) production mail business and
supporting software for $361 million, subject to certain
adjustments. The company anticipates proceeds from the sale of
approximately $270 million, net of estimated closing costs,
transaction fees and taxes. Pitney Bowes expects to use the
majority of the net proceeds from the sale to pay down debt.
The transaction is likely to be completed late in the second or
early in the third quarter subject to customary closing
conditions.
Pitney Bowes’ Document Messaging Technologies production mail
business is a global leader in enterprise print, mail and customer
communications solutions. Platinum Equity is a leading global
private equity firm with a highly specialized focus on business
operations and more than 20 years’ experience acquiring and
operating businesses that have been part of large corporate
entities.
“DMT is a leader in its market with all the tools it needs to
thrive as a standalone business. It has a broad range of advanced
inserting, sorting and print solutions and a committed global
workforce that delivers world-class client satisfaction,” said
Platinum Equity Principal Adam Cooper. “We look forward to
partnering with the management team to drive operational excellence
and invest in growth, both organically and through prospective
strategic acquisitions.”
Also included in the transaction is the enterprise mail, print
and data management software business that integrates data with
print streams to optimize document output for high-volume
production mailers.
“In November 2017, we initiated a review of strategic
alternatives to create long-term shareholder value,” said Marc
Lautenbach, Chief Executive Officer, Pitney Bowes. “Our decision to
sell our Document Messaging Technology business is the result of a
thorough evaluation of the best opportunity for long-term growth
for both DMT and Pitney Bowes. As a stand-alone business, DMT will
have greater flexibility and opportunity to build on its
industry-leading portfolio, create greater market opportunity and
deliver new client value. For Pitney Bowes, this transaction
supports our move to higher growth markets and aligns with our
strategic intent to do in the shipping market what we’ve done in
mailing for almost 100 years – enabling global commerce by taking
out the complexity and enhancing the value for clients.”
Goldman Sachs & Co. LLC is serving as financial advisor to
Pitney Bowes and Debevoise & Plimpton LLP is serving as the
Company’s legal advisor. Morgan, Lewis & Bockius LLP is serving
as legal advisor to Platinum.
About Platinum Equity
Founded in 1995 by Tom Gores, Platinum Equity is a global
investment firm with $13 billion of assets under management and a
portfolio of more than 30 operating companies that serve customers
around the world. The firm is currently investing from Platinum
Equity Capital Partners IV, a $6.5 billion global buyout fund.
Platinum Equity specializes in mergers, acquisitions and operations
– a trademarked strategy it calls M&A&O® – acquiring and
operating companies in a broad range of business markets, including
manufacturing, distribution, transportation and logistics,
equipment rental, metals services, media and entertainment,
technology, telecommunications and other industries. Over the past
22 years Platinum Equity has completed more than 200
acquisitions.
About Pitney Bowes
Pitney Bowes (NYSE:PBI) is a global technology company providing
commerce solutions that power billions of transactions. Clients
around the world, including 90 percent of the Fortune 500, rely on
the accuracy and precision delivered by Pitney Bowes solutions,
analytics, and APIs in the areas of ecommerce fulfillment, shipping
and returns; global ecommerce; office mailing and shipping; presort
services; location data; and software. For nearly 100 years Pitney
Bowes has been innovating and delivering technologies that remove
the complexity of getting commerce transactions precisely right.
For additional information visit Pitney Bowes, the Craftsmen of
Commerce, at www.pitneybowes.com.
Forward-Looking Statements
This press release contains statements that are forward-looking
within the meaning of Section 27A of the Securities Act of 1933, as
amended (the Securities Act) and Section 21E of the Securities
Exchange Act of 1934, as amended. These forward-looking statements,
including statements concerning the consummation of the
transactions contemplated by the Stock Purchase Agreement between
Pitney Bowes and Platinum Equity and the costs associated with the
sale of Document Messaging Technologies, are based on current
expectations and assumptions that are subject to risks and
uncertainties and actual results could differ materially. Words
such as “estimate,” “believe,” “expect,” “anticipate,” “intend,”
and similar expressions may identify such forward-looking
statements. We undertake no obligation to publicly update or revise
any forward-looking statements, whether as a result of new
information, future events or otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20180430005700/en/
Pitney BowesBill Hughes, 203-351-6785Media
RelationsWilliam.Hughes@pb.comorAdam David, 203-351-7175Investor
RelationsAdam.david@pb.comorPlatinum EquityDan Whelan,
310-282-9202dwhelan@platinumequity.com
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