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Toshiba America Aquires $45 Million Dealer, Offtech

Press release from the issuing company

Irvine, CA– Toshiba America Business Solutions, (TABS) announced today that it has acquired Offtech of Wilmington, MA, one of the largest independent office equipment supplier dealers in the U.S. with 350 employees and annual revenues of $45 million. This marks the first acquisition of a competitive line dealership for TABS. Formerly a Ricoh dealer, Offtech will become part of Toshiba's TOPAC division, a network of acquired Toshiba equipment dealers. Offtech and its six offices in the New England region will be integrated with an existing TOPAC subsidiary in the Boston area, to become a major market force in the Northeast. Total revenue for the two combined is $60 million. Former Offtech owner and President, Steve Albano, will remain with the company and be President of the new organization. This announcement signals the copier manufacturer's aggressive expansion strategy, as Toshiba plans to grow the TOPAC operation within TABS by targeting large and independent competitive dealers in the top 25 U.S. markets. According to Rick Taylor, Senior Vice President, Sales, Marketing, Business Operations, TABS, "This is one of our strategic initiatives in an overall strategy to capture market share and become a top three copier manufacturer in the next three years. While other office equipment companies continue to struggle, we are implementing our growth strategies with great success." Since its inception six years ago, TOPAC has acquired 13 independent dealers. There are currently eight existing subsidiaries in the network with locations across the US. The eight subsidiaries have over 30 offices with headquarters in Las Vegas, NV; Denver, CO; Deerfield Beach, FL; Atlanta, GA; Louisville, KY; Detroit, MI; Philadelphia, PA; and Boston/Wilmington, MA. TOPAC Operations Consolidated Within TABS Effective January 1, 2001, TABS consolidated all U.S. sales channels into a single organization. By leveraging the resources of TABS' wholesale group, the Electronic Imaging Division, (EID) which has a staff of 300 employees, the TOPAC subsidiaries are expected to grow at a much faster rate. By 2003, TOPAC's revenue is expected to nearly triple through internal growth and acquisition. Rick Taylor has overall responsibility for operations, sales and marketing activities, including TOPAC subsidiaries, with individual TOPAC presidents reporting directly to him. Top management at TOPAC responsible for effectively executing the growth strategy are: Wayne Wilkinson, Vice President of TOPAC Business Operations, and Dan Langham, Senior Vice President and Chief Financial/Information Officer, responsible for acquisitions. Taylor said TABS will continue its aggressive acquisition strategy by targeting dealers with annual revenue of at least $20 million. "We are identifying competitive dealers with the management team and infrastructure that will allow easier integration with a larger corporation. With guidance, support and capital infusion from TABS, dealers like Offtech can benefit from greater resources and grow at a much more rapid pace," he added. Also part of the growth strategy at Toshiba America Business Solutions is a recently launched brand recognition campaign designed to gain competitive advantage. Both major print and broadcast advertising programs are currently underway. Toshiba has also developed of full line of digital products and services to capitalize on conversion of office equipment from analog copiers to networked, digital copier/printers and other digital innovations.