HUDSON, N.H., Nov. 5 -- Presstek, Inc., a leading manufacturer and marketer of environmentally responsible high tech digital imaging solutions for the graphic arts and laser imaging markets, announced today that parties have closed on Presstek's purchase of A.B.Dick Company.
A.B.Dick Company is a leading worldwide supplier to the graphic arts and printing industry, manufacturing, marketing and servicing equipment and supplies for all stages of document creation -- pre-press, press and post- press.
In July 2004, A.B.Dick filed for Chapter 11 bankruptcy protection. At the same time, Presstek entered into an asset purchase agreement with A.B.Dick pursuant to which Presstek would acquire the business and assets of A.B.Dick Company through the U.S. Bankruptcy Code Section 363 asset sale provisions. Presstek's bid was approved by the U.S. Bankruptcy Court on November 3, 2004.
Presstek's Chief Financial Officer Moosa E. Moosa stated, "The closing price is approximately $40 million and will be paid in cash. In connection with this transaction, Presstek has increased its line of credit from $50 million to $80 million in a credit agreement with Citizen's Bank, KeyBank and Bank North, a portion of which will be used to accommodate the cash needs of this transaction. Presstek has no plans at the present time to initiate any stock offerings in connection with this acquisition."
Presstek's President and CEO Edward J. Marino said, "We are very pleased to announce the completion of our acquisition of A.B.Dick. We will begin working with A.B.Dick immediately to improve the operation of the company. We would like to take this opportunity to welcome A.B.Dick employees, as well as their customers and vendors, to the Presstek family. We are looking forward to a bright future together."
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