SATO to Buy Checkpoint's Barcode Systems Businesses
SINGAPORE—SATO, a pioneer in the Automatic Identification and Data Collection (AIDC) industry and a leader in barcode printing, labelling, and EPC/RFID solutions, announced today a definitive agreement to purchase
Checkpoint Systems' Bar Code Systems (BCS) businesses.
Under the agreement, SATO is acquiring Checkpoint's BCS businesses, with operations in North America, Asia Pacific and Europe, including its hand-held labeling solutions (HLS) in the United States. The transaction price will
include approximately US$8.6 million in excess of net book value and total consideration for the business is expected to be approximately $40 million, payable in cash. The purchase price shall reflect adjustments made to the net tangible asset value upon finalisation of the closing balance sheet. The transaction is expected to be closed by January 30, 2006, subject to local and legal requirements.
The transaction will allow Checkpoint to focus on its core businesses, while enabling SATO to immediately increase its presence and customer base in the BCS market, especially for consumables and services, in line with SATO's overseas business expansion strategy.
George Off, Chairman and Chief Executive Officer of Checkpoint, commented, "Checkpoint is pleased to enter into this agreement with SATO, a company with a solid presence in the Bar Code Systems business . Our customers will benefit from SATO's commitment to excellence in its product offerings and services and
our BCS employees will now have the opportunity to work for a company solely focused on long-term growth in the Bar Code Systems business. This transaction gives us the opportunity to now totally focus our resources on our growth businesses and create increased value for our customers and shareholders."
"This is a strategic acquisition that complements our existing businesses and fits with our long-term vision of growth and profitability, especially in the consumables market segment outside of Japan. Consumables sales account for a large portion of our local business and will continue to be an important driver for growth. Investing in businesses with established operational and industry expertise can only accelerate our expansion plans as we bring to market the vision that drives our business, SATO's unique DCS & Labelling, and continue our aggressive push to capture more market share overseas. The acquisition will not only bring complementary product lines, but also give SATO the opportunity to gain a foothold in markets that it has not fully explored so far. As the two