HONG KONG, Nov. 17 /Xinhua-PRNewswire/ -- Checkpoint Systems, Inc.
(NYSE: CKP), announced on November 14 that it has acquired ADS Worldwide
(ADS). Total consideration for the business will be in the form of cash and
will be approximately USD8.5 million, plus closing costs.
Based in Hull, England, ADS is an established supplier of tags, labels,
and trim to apparel manufacturers, retailers and brands around the world.
With operations in the UK, Hong Kong, China, India and Turkey, ADS employs
more than 235 people worldwide. ADS provides Checkpoint with new
technological and production capabilities in the United Kingdom, China and
Turkey, and extends its network of global print-shops. The acquisition is
expected to add more than USD20 million of revenue in 2007 and be neutral to
slightly accretive to earnings per share, due to integration costs in the
first year and purchase accounting.
George Off, Chairman and Chief Executive Officer of Checkpoint,
commented, "The acquisition of ADS is in line with our strategy to grow our
CheckNet service bureau business to create increased value for our customers
and shareholders. This transaction underlines Checkpoint's continued
commitment to premium source tagging solutions for the global retail apparel
industry. ADS has an outstanding customer base and a longstanding
commitment to excellence in its product offerings and services. Our
combined operations will provide customers with advanced data management and
logistics capabilities across our expanded service bureau network and
further enhances our Electronic Article Surveillance (EAS) source tagging
program."
ADS President Simon Winstanley stated, "The sale to Checkpoint will
enable ADS customers to continue receiving the quality service that they
have been used to, while benefiting from an expanded global network of
locations and technologies including integrated RF-EAS labels and laser
printing. ADS will also benefit from Checkpoint's significant investments
in technologies such as RFID."
About Checkpoint Systems
Checkpoint Systems, Inc. is a multinational manufacturer and marketer of
integrated systems solutions for retail security, labeling, and
merchandising. Checkpoint is a leading provider of EAS and RFID systems,
source tagging, hand-held labeling systems and retail merchandising
systems. Applications include automatic identification, retail security and
pricing, and promotional labels. Operating directly in 30 countries,
Checkpoint has a global network of subsidiaries and provides professional
customer service and technical support around the world. Checkpoint
Systems, Inc.'s website is located at www.checkpointsystems.com .
About ADS Worldwide
ADS is an established supplier of apparel packaging to clothing
manufacturers, retailers and brands around the world. Founded in 1988 to
exploit the growing demand for the barcode, ADS has grown rapidly over
recent years to become one of the largest independent suppliers in the UK.
With wholly owned subsidiaries in the UK, Hong Kong, China, India and
Turkey -- as well as long-standing partners in Mauritius and Cyprus -- ADS
provides retailers and brands with a global service for all of their
packaging requirements. Products supplied include swing tickets, waist
riders, self-adhesive labels, printed care labels, woven labels and plastic
seals, as well as other specialist packaging and trims. Perhaps best known
for the ability to process and print variable barcode information using
powerful software-based systems, ADS has a specialist division (ADS
Solutions) handling the development of all production/data processing
software as well as the company's sophisticated on-line ordering and
tracking facilities. The company's website is located at www.ads-
worldwide.com .
Safe Harbor Statement
This press release may include information that could constitute forward-
looking statements made pursuant to the safe harbor provision of the Private
Securities Litigation Reform Act of 1995. 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 those matters disclosed in the Company's Securities and
Exchange Commission filings. Checkpoint Systems Inc. undertakes no
obligation to update or revise any forward-looking statements to reflect
events or circumstances that may arise after the date of this report.