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Clayton Dubilier & Rice Raises Stake in Kinko's to 73%

Monday, January 13, 2003

Press release from the issuing company

NEW YORK, Jan. 10 -- Clayton, Dubilier & Rice, Inc. (CD&R), a leading global private equity investment firm, announced today a $460 million recapitalization of Kinko's, Inc. Kinko's is the leading provider of document solutions, business services and outsourcing facility management. In a series of transactions, CD&R Fund VI invested $175 million, JPMorgan Partners invested $25 million and the Company purchased $260 million of its stock utilizing its cash balances and its credit facility. The transactions afforded the remaining shareholders of Kinko's, which is a private company, the opportunity to sell all or a portion of their interests. Through these transactions, CD&R Funds and JPMorgan Partners raised their equity ownership stakes to approximately 73% and 18%, respectively. Further terms were not disclosed. "This is a terrific transaction for CD&R and Kinko's," said David Wasserman, a principal of CD&R. "Kinko's bought back 25% of its shares, many founding shareholders of the Company achieved liquidity, and we were able to invest an additional $175 million at an attractive valuation in an outstanding brand with significant opportunity for continued growth and profitability." In recent years Kinko's has evolved from operating traditional copy centers to providing a broad array of business services to individuals and corporate customers. Under the leadership of CEO Gary Kusin, Kinko's has implemented strategies designed to leverage the Company's scale, technology, and brand recognition into related products and services. The Company is also increasing its commercial customer base and expanding its international presence. CD&R Fund V originally invested $219 million for a 29.6% equity interest in Kinko's in December 1996.




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