Presstek Accelerates Integration of ABDick, To Close Illinois Location
Press release from the issuing company
HUDSON, N.H., Aug. 8 -- Presstek, Inc., a leading manufacturer and marketer of environmentally-responsible, high-tech, digital imaging solutions for the graphic arts and laser imaging markets, today announced the centralization and relocation of substantially all of ABDick's operational functions from ABDick's current central office facility in Niles, IL to Presstek's headquarters in Hudson, NH. The consolidation is designed to allow Presstek to create a powerful, centralized sales and service organization with a strong market focus. This will also strengthen Presstek's organizational efficiency and reduce operational costs.
As part of the centralization the following changes will take place:
* Current ABDick executives, including Susan McLaughlin, President of ABDick North America and Senior Vice President at Presstek, will become part of the Presstek leadership team in Hudson, NH.
* ABDick will close its Niles, IL office facility and relocate its inside sales staff and other limited customer facing operations to a new facility in the Chicago area.
* Presstek and ABDick will function as a unified entity and will report as a single business unit.
"The ongoing integration of the Presstek and ABDick businesses is moving forward and has shown positive results," said Edward J. Marino, President and CEO of Presstek. "We are committed to fully optimizing the business assets acquired with ABDick, and maximizing our new channel's efficiencies. This commitment has led us to the conclusion that the time was right for us to accelerate our integration process by more fully uniting Presstek's and ABDick's operations and functioning as one company. The changes attached to today's announcement are designed to better serve our customers and deliver increased value for our shareholders."
The announced plan does not call for the relocation of either the ABDick warehouse operation in Des Plaines, IL or current Presstek and ABDick staff located in regional offices in North America, Europe and other worldwide locations.
"We anticipate that the centralization announced today will be substantially complete in early 2006. As one would expect, this centralization and relocation will result in some incremental additions to staff at Presstek's Hudson headquarters. We expect the actions related to today's announcement will yield an increased cost savings from the previously announced annualized run-rate level of $7 million to $8.5 million," said Moosa E. Moosa, Executive Vice President and Chief Financial Officer of Presstek.
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