Banta to Acquire Singapore-based Supply-Chain Management Company
Press release from the issuing company
MENASHA, Wis., June 19 -- Banta is acquiring Singapore- based Mentor Media Ltd. (Singapore Stock Exchange), signaling a major Asian expansion of Banta's supply-chain management business. Banta has reached agreements with the principal shareholders of Mentor Media to acquire the entire company, subject to approval by the company's remaining shareholders and to certain conditions.
Mentor Media has eight operations, three in Singapore; two in Shanghai, China; and one each in Shenzhen, China; Taiwan; and South Korea. Its 2002 sales were U.S.$46 million (S$83 million, at a rate of 1.00 U.S. dollar to 1.79 Singapore dollars).
"This acquisition will significantly advance our strategic vision of global leadership in supply-chain management outsourcing, transforming Asia into one of our strongest geographic regions," says Banta Chairman and Chief Executive Officer Donald D. Belcher. "With Mentor Media, our Banta Global Turnkey Group will gain the infrastructure to serve its existing customers precisely where they are expanding their operations, and where the demand for supply-chain services is rapidly growing. In addition, Mentor Media will bring us new customers, which will create opportunities to extend service relationships to our operations in the U.S., Mexico and Europe.
"Most attractive to us are our two companies' similarities in terms of markets served, operational culture and financial strength. Mentor Media has excellent customer relationships -- many of which overlap with Banta -- an extremely capable and energetic management team, and a strong balance sheet," says Belcher.
Mentor Media Executive Chairman and Managing Director Wong Yat Foo will join Banta and will continue to have leadership responsibilities for all of Mentor Media's operations.
Wong says the alliance with Banta provides his firm an immediate global presence that is critically important to his company's strategic growth plans. "With Banta's financial strength, expertise, reputation and presence in the U.S. and Europe, we gain an operational platform from which to aggressively pursue our shared vision of global supply-chain management leadership," notes Wong. "By providing outsourcing solutions on a global scale, we will be participating directly in the growth potential of our customers, several of which are served by both of our companies. Our alliance is a perfect fit for both of us and we look forward to what we expect will be a smooth integration process and many years of exciting growth."
Banta Global Turnkey Group President Patrick G. Keohane says numerous synergies will help assure a successful merging of the two companies' operations. "Our product and service focus is a virtual mirror image of one another," notes Keohane. "Both of our business models emphasize a full- service approach to meeting the outsourcing needs of the computer hardware, software and electronic device markets, while emphasizing disciplined process control and a total focus on the customer. This similarity of operational cultures is extremely appealing to us, as is Mentor's excellent reputation in the marketplace. There are many opportunities to lower costs by leveraging economies of scale and by responding quickly to our customers' worldwide service needs, which are growing most rapidly in China, Singapore and South Korea."
The cash transaction is valued at US$70 million (S$125 million). Mentor Media shareholders will receive $0.34 per share (S$0.60 per share) of common stock. The shares last closed at $0.30 per share (S$0.54 per share) on the Singapore Stock Exchange. Mentor shareholders are expected to vote on the acquisition in August 2002, and the transaction is expected to close early in Banta's fourth quarter, which begins October 1, 2002.
Banta expects the acquisition's financial effect on the corporation's consolidated earnings per share will be modestly accretive in 2003, and accretive in 2004 and 2005.
Mentor Media Ltd. is one of the leading supply-chain management companies in Asia. It provides value-added outsourcing services to the computer hardware, software, consumer electronics and telecommunications industries, employing approximately 500. Its services include customized manufacturing, supply-chain management, product assembly, packaging, print production, software media duplication, order fulfillment and distribution.
Banta Corporation is a technology and market leader in printing and supply-chain management, employing approximately 8,000. The corporation's 2001 annual sales were $1.46 billion. Banta's global supply-chain management business, Banta Global Turnkey Group, operates 10 facilities in North America, Europe and Asia. It provides a wide range of outsourcing capabilities to the world's largest technology companies. Services range from component procurement, product assembly and packaging to inventory control and global distribution. The Banta Print Group operates 27 facilities in North America, providing a comprehensive combination of printing and digital imaging solutions to leading publishers and direct marketers, including advanced digital content management and e-business services.
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