Standard Register to Sell Equipment Service Business to Pitney Bowes
Press release from the issuing company
DAYTON, Ohio--Dec. 14, 2004-- Standard Register today announced that it has signed an agreement to sell selected assets and transfer selected accrued liabilities of its equipment service business to Pitney Bowes for approximately $17 million cash. Standard Register will retain and collect an estimated $3 million in equipment service business accounts receivable.
The business generates annual revenue of approximately $23 million from the servicing of an installed base of printers and other document handling devices for 7,000 customers. Under the agreement, all of Standard Register's approximately 200 equipment service associates will be offered jobs by Pitney Bowes.
Pitney Bowes operates an extensive service organization of 1700 associates, supporting its installed base of mail and document management systems. According to Michael J. Critelli, chairman and chief executive officer, Pitney Bowes Inc., "Our customers and partners will benefit from the expansion of our service network and our growing range of offerings, including direct service for document management equipment and systems."
"This transaction will allow Standard Register to redirect some investment to other core business initiatives and will provide scale and geographic service coverage advantages to our customers," said Dennis Rediker, Standard Register's president and chief executive officer.
The sale is scheduled to close by month-end and is expected to generate a fourth-quarter gain for Standard Register.
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