Moore Acquires IBM Document Management Services Unit
Press release from the issuing company
TORONTO & STAMFORD, Conn.--Jan. 2, 2002--Robert G. Burton, President and Chief Executive Officer of Moore Corporation Limited announced today that the company has acquired the assets of Document Management Services, a division of IBM Canada Ltd. (DMS), a subsidiary of International Business Machines Corporation.
Specializing in printing and distribution of client communications, DMS is the second largest print and mail service provider in Canada and is a leader in the outsourcing marketplace. Key industries that DMS provides services for include Finance and Wealth Management, Telecommunications, Utilities and Insurance. DMS had pro-forma revenues of approximately US $23 million in 2001. The transaction is expected to be accretive to earnings. Terms of the transaction were not disclosed.
Operating from state of the art facilities across Canada, DMS is a leading, print outsourcing service provider supporting a variety of platforms and solutions to its established client base. As a part of the acquisition, Moore has entered into a multi-year marketing agreement with IBM Canada where Moore is the preferred provider of print services in Canada for new business proposals and for IBM's existing outsourcing clients.
Mr. Burton stated:
"The plan we announced when we came to the company last December was to eliminate $100,000,000 in costs, leverage our size to generate purchasing synergies, cross-sell our core printing platform, sell non-core assets and ultimately begin to acquire complementary growth businesses that support our core print platform. The DMS acquisition presents a tremendous strategic opportunity for Moore to increase its market share in the important outsourcing print market. DMS is a profitable, well-managed business that has tremendous opportunity to accelerate its growth as a part of Moore.''
"DMS is a perfect fit for our statement production and distribution business. This expansion allows us to better utilize our capacity, while generating incremental manufacturing and distribution efficiencies. With this acquisition we will now have second to none resource depth in the outsourcing marketplace, a position we are committed to maintaining. I am also very excited about the partnership we are entering with IBM. The DMS acquisition provides Moore a strong introduction to IBM's top-notch customers who should benefit from Moore's other print related capabilities. I look forward to the swift integration of DMS into the company and to welcoming both the employees and customers of DMS to Moore.''
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