Pitney Bowes buys PSI Group, Largest U.S. Mail Pre-sort Company
Press release from the issuing company
STAMFORD, Conn., June 27 -- Pitney Bowes today signed a definitive agreement to acquire 100% of the stock of PSI Group, Inc. (PSI), the nation's largest mail pre-sort company, for $130 million. PSI prepares, sorts and aggregates mail to earn Postal discounts and expedite delivery for its customers. The company will become a wholly-owned subsidiary of Pitney Bowes, continuing to operate under its current management and focusing solely on providing pre-sort mail services.
"The acquisition of PSI is an outgrowth of our commitment to delivering shareholder and customer value," said Michael J. Critelli, Chairman and CEO of Pitney Bowes. "PSI's knowledge and expertise in helping high-volume mailers reduce the costs and speed the delivery of mail complements our existing businesses and will help us better serve our high-volume customers. For our shareholders, this transaction is an example of how we plan to strategically expand our participation in the integrated mail and document stream."
PSI employs approximately 900 people in its twelve operating centers across the U.S. and in its headquarters in Omaha, Nebraska. PSI's certified operating centers have met the very stringent requirements of the U.S. Postal Service's Mail Preparation Total Quality Management Program, making them the pre-sorter of choice for large first-class mailers and their service providers. The mailing industry benefits from pre-sort operations and workshare partnerships as they help to keep postage prices lower, improve speed and accuracy of service and ultimately enhance the overall value of mail.
"We view this transaction as a very positive step towards further enhancing PSI Group's position as the premier pre-sort mail partner of choice," said Robert F. Krohn, Chairman and CEO of PSI Group, Inc.
Subject to the completion of certain conditions, the transaction is expected to close in the third quarter 2002.
PSI Group, Inc. was established in 1995 and is a leading pre-sort company with approximately a 5% share in the $1.2 billion outsourced pre-sort services market. The company, which is headquartered in Omaha, has Operating Centers in Cedar Rapids, Charlotte, Dallas, Houston, Kansas City, Las Vegas, Lincoln, Omaha, Phoenix, San Francisco, Seattle and Pine Brook, New Jersey.
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