omniture

Checkpoint Systems Acquires ADS Worldwide

2006-11-17 20:17 5110

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.

Source: Checkpoint Systems, Inc.
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