Danka Business Systems PLC to Sell Part of its Netherlands Operations
Press release from the issuing company
ST. PETERSBURG, Fla.--Jan. 17, 2003--Danka Business Systems PLC today announced that it has entered into an Agreement to sell a portion of its business in the Netherlands. This part of the Company's operation sells and services Toshiba branded photocopiers in segments 0-2 (machines with up to 30 pages per minute), fax machines and printers and distributes Toshiba products through dealer relationships.
The business, with annualized revenues of approximately $12 million, will be sold to Toshiba TEC Germany Imaging Systems GMBH for the sum of approximately $6.7 Million, subject to certain post-closing adjustments.
Peter Williams, Danka's Chief Operating Officer, Europe, stated: "We believe this sale to be highly beneficial for both Danka and Toshiba. It allows Danka to exit a channel that has become less consistent with the Company's strategic goals. Indirect sales for Danka in Europe will now be solely focused through its pan-European Infotec dealer channel that is well established in the Netherlands. At the same time, this business gives Toshiba an established machine base to develop its footprint in these segments in the Netherlands."
"The sale is consistent with Danka's continued strategy to divest itself of non-strategic businesses and use the proceeds to transition the Company toward future goals," commented Lang Lowrey, Danka's Chief Executive Officer. Mark Wolfinger, Danka's Chief Financial Officer, commented: "We will use the proceeds of this sale to further assist in our already dramatic debt reduction and move that much closer to our ultimate objective of achieving a more efficient, long-term, lower cost financial structure. The execution of initiatives like this continue to place the Company in a better position to seek more attractive financing opportunities for our remaining debt."
Danka received $3.2 Million on execution of the Agreement and will receive the balance of the consideration upon closing, which is expected to occur in early March and is subject to completion of certain legal and regulatory steps.
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