Danka Business Systems PLC Announces Sale of New Zealand Business23 Oct, 2001
Danka Business Systems PLC Announces Sale of New Zealand Business
Danka Business Systems PLC announced that it has entered into an Agreement to sell certain assets of its New Zealand subsidiary, Danka New Zealand Limited, to Minolta New Zealand Limited (``Minolta''). Under the terms of the sale, Minolta will pay approximately $1.2 Million, for the assets, which will be offset by Danka's retention of certain trade payables. Danka will also retain certain accounts receivable. Danka will use the net proceeds of the sale to reduce debt under its newly executed Senior Bank Credit Facility. The sale is expected to close on or about November 2, 2001.
David Berg, Chief Operating Officer of Danka's Canada, Latin America and Asia Pacific Regions, stated: ``This disposition is consistent with the Company's strategic mission to dispose of non-performing assets. Danka New Zealand is in the unenviable position of competing against the manufacturer of its products in New Zealand and was maintaining insufficient market share. The operation constituted a drain on the Company's Australian business, on which we will be able to devote more attention and focus to ensure its continued operational improvement. I am certain the business will prove much more strategic to Minolta than to Danka.''
Danka's Chief Executive Officer, Lang Lowrey, added: ``The Company continues to divest itself of assets, like the New Zealand business, which have had a negative operational impact on the overall Company. It simply made no sense for Danka to remain in this market. We are pleased with the terms of this transaction and believe it will be a win for both Danka and Minolta, as well as for the customers. We will continue to evaluate all opportunities for further debt reduction and enhanced performance.''
Danka Business Systems, PLC, headquartered in London, England, and St. Petersburg, Florida, is one of the world's largest independent suppliers, by revenue, of office imaging equipment and related services, parts and supplies. Danka provides office products and services in 30 countries around the world. For additional information about copier, printer and other office imaging products from Danka, visit the web site at: http://www.danka.com.
Certain statements contained in this press release, including statements related to Danka's future business and financial performance, are forward-looking. Such statements reflect the current views of Danka with respect to future events and are subject to certain risks, uncertainties and assumptions, including the possibility that the sale of the New Zealand business will not close as expected, or at all, that could cause actual results to differ materially from those reflected in the forward-looking statements. Readers are cautioned not to place undue reliance on these forward looking statements, which reflect management's analysis only as of the date they are made.