Move Paves Way for High-Tech Tobacco Tax Stamps; Tax Revenue Losses on Tobacco Estimated at $5 Billion Nationwide
SPRINGFIELD, Va., Sept. 9 /PRNewswire-Asia/ -- SICPA Security Inks and Systems USA, Inc., a leading provider of integrated government security solutions on high excise tax products, today announced that it has acquired Meyercord Revenue Inc., previously a wholly-owned subsidiary of Illinois Tool Works Inc. (NYSE: ITW). The transaction will combine SICPA's international government tax platform expertise with Meyercord's experience in producing and distributing tobacco tax stamps for U.S. states and municipalities. The transaction closed on September 2nd. Financial terms were not disclosed. ITW has retained a related business that manufactures and services tax stamp application equipment.
Charles Finkel, SICPA's Executive Vice President said, "The combination of SICPA and Meyercord technology has already proven itself in California, where our companies work together to produce high-tech, paper-based cigarette tax stamps that help prevent counterfeiting and recover lost revenue on untaxed product. And we have recently signed a similar contract in Massachusetts and implementation is currently in progress. Our goal is to make this technology as widely available and easily implemented throughout the United States, as well as to enhance existing state and federal tobacco tax collection systems."
According to 2009 statistics from the Bureau of Alcohol, Tobacco, Firearms and Explosives, the United States loses $5 billion per year in state taxes due to counterfeit tobacco -- a figure which some sources view as conservative. California, which in 2005 implemented a program to enhance its cigarette-tax enforcement practices, including use of high-tech stamp technology, estimates the state has already recovered more than $150 million in additional tax revenue each year since the program began.
Meyercord currently provides 250 different tax stamps to 47 states, approximately 140 municipalities and Native American tribes. As a part of the acquisition of Meyercord, SICPA plans to retain the current employment level at Meyercord's facility in Carol Stream, Illinois, near Chicago.
"We are committed to Meyercord, its management and employee base," said Jim Bonhivert, President and Chief Executive Officer of SICPA North America. "We plan to profitably grow the current operation and its reach while moving forward with technology that contributes to the public good."
About SICPA
SICPA is the leading global provider of banknote security inks and integrated government security systems on high excise tax products in both state and federal jurisdictions currently securing over 40 billion tax stamps worldwide. SICPA has successfully deployed nation-wide and state-operated product tracking and tracing systems in several countries in South America, North America, Europe and Asia.
SICPA is a Swiss company, founded in 1927, with headquarters in Lausanne, Switzerland. At the core of SICPA's security expertise are high-technology security inks which protect the majority of the world's banknotes, identity documents as well as many other value documents from counterfeiting and fraud. The company employs more than 2,200 people worldwide and is established in 22 countries on 5 continents, with products sold to most countries worldwide. SICPA is a trusted government security solutions provider to governments, central banks and high-security printers.
For further information, please contact:
SICPA Security Solutions SA
Samita Mishra
Senior Marketing Manager
Tel: +41-21-627-62-66
Fax: +41-21-627-61-80
Email: samita.mishra@sicpa.com
Web: http://www.sicpa.com
SICPA Product Security LLC
Mariam Ozaltin
Government Affairs
Tel: +1-212-308-6933
Fax: +1-212-308-1009
Email: mariam.ozaltin@sicpa.com
Web: http://www.sicpa.com
