Presstek Signs Agreement To Acquire A.B.Dick in $40 Million Deal
Press release from the issuing company
***EDITOR'S NOTE: Premium Access Members at WhatTheyThink.com can view an exclusive interview with Presstek's CEO Ed Marino. The interview was conducted yesterday by Senior WTT Editor Gail Nickel-Kailing.
July 14, 2004 — Presstek, Inc., a leading manufacturer and marketer of environmentally responsible high tech digital imaging solutions for the graphic arts and laser imaging markets, has announced that it has entered into an asset purchase agreement with A.B.Dick under which Presstek will acquire the business and assets of privately-held A.B.Dick Company through a U.S. Bankruptcy Code section 363 asset sale. A.B.Dick Company filed for Chapter 11 bankruptcy protection earlier today. The transaction, valued at approximately $40 million, is subject to Bankruptcy Court approval.
Presstek’s Chief Financial Officer Moosa E. Moosa said, “Presstek has also joined with A.B.Dick’s current lender, Key Corporate Capital, Inc., to provide $7 million in debtor-in-possession (DIP) financing, subject to Bankruptcy Court approval, to fund A.B.Dick’s post-petition operating expenses and to meet supplier and employee commitments through the completion of the sale proceedings. We anticipate that the sale proceedings will be complete in approximately 90 days.”
Commenting on the strategy behind the acquisition, Presstek President and Chief Executive Officer Edward J. Marino said, “We view this potential acquisition as a strategic move to expand the long term business opportunities for both Presstek and A.B.Dick. The acquisition is designed to extend the distribution capability and channel support for Presstek and to drive an increased level of digital technology and services by leveraging Presstek’s industry-leading technology portfolio. As part of Presstek’s market-focused and customer-oriented strategic direction, this acquisition represents a focused investment for future business growth.”
Marino added, “Over the past two years, Presstek has refocused and streamlined its organization. As a result, the company is now on a solid footing and is well positioned to implement a successful integration of the two organizations.”
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