American TonerServ Announces Intention to Acquire iPrint Technologies, Inc.23 Oct, 2008
American TonerServ Announces Intention to Acquire iPrint Technologies, Inc.
SANTA ROSA, CA, Jul 17, 2008 (MARKET WIRE via COMTEX News Network) -- American TonerServ Corp. (OTCBB: ASVP) ("ATS"), a strategic consolidator in the more than $6.0 billion highly fragmented printer supplies and services industry and a leading recycler of toner cartridges, announced today it has executed a Letter of Intent to acquire certain assets of iPrint Technologies, Inc. iPrint Technologies ("iPrint) operates out of the greater Los Angeles area (Chatsworth, California), and the San Francisco Bay area (Larkspur, California). iPrint focuses on providing printing supplies and service to Fortune 1000 companies nationwide.
According to unaudited financial information provided to ATS by iPrint, the
business generated approximately $12 million in revenue for the twelve months
ended June 30, 2008. Consideration for the purchase would be determined based on
a due diligence review of iPrint's financial statements and other factors, but
is expected to include a combination of cash, ATS stock and a promissory note.
Dan Brinker, CEO of ATS, said, "iPrint focuses on reducing overall printer costs for many of the Fortune 1000 companies and middle-market businesses throughout the U.S. iPrint has a solid reputation for providing excellent customer service, industry expertise, and advanced technical support. iPrint's relationships with manufacturers and distributors allow them to create tailored supply programs that give their customers both rapid and reliable delivery. Furthermore, their focus on environmentally sound practices fits well with our GreenSmart program and other initiatives."
The iPrint management team would bring more than 40 years of collective printer industry experience to ATS. Chad Solter, President of iPrint, said, "We will continue to fulfill iPrint's mission of providing superior customer service and value. As our business continues to grow, the resources and programs that ATS provides will be a great support. The programs ATS has created, particularly in the area of environmentally conscious recycling and re-use of toner cartridges, fit with our own vision to build stronger ties to our existing customers and attract other organizations seeking to streamline vital printing functions while minimizing waste and inefficiency. My management team and I are looking forward to joining the ATS team."
Mr. Brinker added, "At the conclusion of this acquisition, the iPrint team would be able to add new services such as print management programs and broader product lines, and at the same time leverage ATS' strengths including bulk purchasing power, sales and marketing tools, technology solutions, and operational expertise and efficiency. We believe that the purchasing power of the combined companies would bring additional benefits to all of our customers."
The acquisition is subject to the completion of due diligence, negotiation and execution of a definitive purchase agreement, the completion of an audit of iPrint's financial statements, as well as customary closing conditions. Additional information related to this transaction will be disclosed upon the execution of a definitive purchase agreement. The LOI provides that the parties will endeavor to complete the transaction within the next 90 days.
Mr. Brinker added, "At the beginning of this year, our management team was charged with growing ATS through acquisitions of the best printer service and supply dealers in major metropolitan areas around the country. Our letter of intent with iPrint fits our strategy to be the leading consolidator of environmentally friendly printer supply and service dealers in the country."
About American TonerServ:
American TonerServ Corp. ("ATS"), a leading recycler of toner cartridges, is building a nationwide organization to efficiently serve the printing needs of small-and medium-sized businesses by consolidating best-in-class independent operators in the $6 billion recycled printer cartridge and printer services industry, offering top-quality, environmentally-friendly products and local service teams. Please see www.AmericanTonerServ.com for more information.
Except for historical information contained herein, the matters set forth above may be forward-looking statements that involve certain risks and uncertainties that could cause actual results to differ from those in the forward-looking statements. Words such as "anticipate," "believe," "estimate," "expect," "intend" and similar expressions, as they relate to the Company or its management, identify forward-looking statements. Such forward-looking statements are based on the current beliefs of management, as well as assumptions made by and information currently available to management. Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors such as the level of business and consumer spending, the amount of sales of the Company's products, the competitive environment within the industry, the ability of the Company to continue to expand its operations, the level of costs incurred in connection with the Company's expansion efforts, economic conditions in the industry and the financial strength of the Company's customers and suppliers. The Company does not undertake any obligation to update such forward-looking statements. Investors are also directed to consider all other risks and uncertainties.
American TonerServ Corp.
SOURCE: American TonerServ
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