Charrette Separates into Two Companies, Sells Products Division
Press release from the issuing company
Goals Are to Maximize Focus and Accelerate Growth
WOBURN, Massachusetts, July 11, 2002- - In a move designed to maximize focus, accelerate growth, and ensure the continued success of each division of the Charrette Corp. as two separate companies, it was announced today that parent company Service Point (www.servicepoint.net) has sold the assets of the US products division and retained its digital reprographics and document management services division.
The products-based company will acquire the Charrette name while the reprographics' company will, for the near term, operate using the name "Charrette ProGraphics" which will eventually be changed to "Service Point USA".
"We are extremely excited about this development," said Jack Ford, Chairman and CEO of Charrette Corp. "Each division has long been a pioneer and leader in its field and among its primary markets, and each has sustained steady growth over the years. Now, with the separation into two companies, each enterprise will be able to grow even more rapidly through a combination of greater focus on client needs and on funding growth."
The Charrette Products division, now known as "Charrette LLC", was sold to Jeffries Capital Partners (formerly FS Private), a New York City-based private equity firm. Jeffries Capital Partners invests in companies with good growth opportunity in a variety of industries. It has invested in such companies as: Au Bon Pain, California Pizza Kitchens, Mulberry Child Care Centers, Beacon Industrial Group, and others.
"Jeffries Capital Partners is an ideal company to acquire Charrette Products," Ford said. "We're highly compatible in terms of our entrepreneurial philosophies, growth goals, retail concentration, and size vis a vis other Jeffries Capital Partners holdings. They will be investing in significant expansion of the products business through acquisition and organic growth." Ford will be joining Charrette LLC as its Chairman and CEO.
Charrette ProGraphics will remain a subsidiary of quoted Spanish-based Service Point and its mission to be the world leader in facilities management, document management and reprographics imaging services. Service Point is a current leader in the digital reprographics and document management sector, being the only company in the industry that is present on a significant scale both in Europe and the US, with consolidated sales of approximately 350 million dollars in 2001.
The company will use the resources generated to invest in the most advanced technology for digital reprographics and document management to further strengthen its position. In the US, industry leadership will be reinforced through organic growth and acquisition of medium-sized companies in the company's sector.
Mark DiPasquale, previously the division president, has been appointed the CEO of Charrette ProGraphics. Service Points' strategy is to continually invest in new technology, exercise an aggressive acquisition policy and maintain organic growth. Its sale of the products-based side of the former Charrette Corp., and its renewed commitment to Charrette ProGraphics, is evidence of fulfilling this strategy.
Charrette ProGraphics' key growth services are On-Site Services (on-site print rooms and cost recovery solutions) and Web-based reprographic services (document management, on-line print ordering and distributed printing) for the architectural, engineering, and construction markets.
States DiPasquale "We are confident of our continued success within the Service Point family. Service Point is firmly committed to investing substantial resources in our technological leadership, network of facilities, and growth strategies. Now, as part of a company with enhanced focus, we will be able to devote our energies and resources on a more clearly defined and supported mission. Our total focus on the reprographics business will permit higher margins for the company and open significant opportunities to work across international borders wherever our 40,000 clients are designing and implementing their ideas. We will better share information and best practices throughout the company worldwide and continuously improve our service to our clients."
Similarly, the sale will help Charrette LLC to more aggressively fulfill its mission of being the leading, value-added provider of design products to the professional marketplace. It is the largest provider of digital imaging wide format printers, finishing equipment and design supplies in the United States. In addition to selling products, it also provides a wide array of technical assistance, color management and equipment services to its design customers. It achieves this through an eighty person sales organization, direct mail catalogs and its on-line catalog.
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