BAR CODE COMPANIES MERGING : SIMI PRINTER MAKER, CHIEF RIVAL MAKE DEAL.Byline: Deborah Adamson and P.J. Hufstutter Daily News Staff Writers Simi Valley-based Eltron International Inc., the self-described ``Honda'' of bar code printer makers, agreed Wednesday to merge with the ``Cadillac'' of its market, Zebra Technologies Zebra Technologies (NASDAQ: ZBRA) is a manufacturer of thermal bar code label and receipt printers, RFID smart label printer/encoders, and card printers, based in Vernon Hills, Illinois. Zebra has products in 100 countries around the world. Corp. In an all-stock transaction worth $680 million, Zebra shareholders will exchange each share for 0.84 shares of Eltron stock, resulting in 72 percent ownership of the new company. The proposed marriage joins two companies that serve different ends of the same market: Eltron makes bar code label printers and accessories for the lower-end niche. Its technology has been used for airline ticketing and coupon printing in supermarkets. Zebra concentrates on higher-end printers. Analysts say the market has been shifting to less costly printers, the niche held by Eltron. ``We were their strongest contender,'' said Daniel Toomey Jr., Eltron's chief financial officer. ``So, clearly, as a combined business, we're well positioned to grow through the year 2000.'' The deal is expected to close in early 1997, pending regulatory and shareholder approvals. The news was announced after the market closed. Eltron's stock rose by a quarter to 33-1/2. Zebra's stock dropped -3/8 to 28-3/4. Eltron, which this month was recognized as the sixth fastest-growing technology firm in the five-county area by the Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. Economic Development Council, will be moving its headquarters to Vernon Hills Vernon Hill II (born circa 1946) is the founder and former chairman, president, and chief executive officer of Commerce Bancorp and Commerce Bank of Cherry Hill Township, New Jersey. , Ill., the corporate offices of Zebra. Toomey said layoffs will be minimal among the combined work force of 1,000, 350 of whom are Eltron employees. He declined to be specific. Eltron's manufacturing operations Manufacturing operations concern the operation of a facility, as opposed to maintenance, supply and distribution, health, and safety, emergency response, human resources, security, information technology and other infrastructural support organizations. will remain in Simi Valley Simi Valley (sē`mē, sĭm`ē), city (1990 pop. 100,217), Ventura co., SW Calif. in an oil, fruit, and farm region; laid out 1887, inc. 1969. . Eltron chairman and chief executive Donald Skinner will be president and chief executive at the new company, while Zebra chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Edward Kaplan will retain the title of chairman. The new entity will have combined sales of $230 million and a market value of $900 million, with more than $90 million in cash, Toomey said. ``I think it's a very good marriage,'' said Richard Davis
``Don Skinner is noted for . . . getting products from design to production and out to market at a short time, to beat competition,'' he said. ``On the other hand, Zebra is an excellent company with excellent margins. They've carved carve v. carved, carv·ing, carves v.tr. 1. a. To divide into pieces by cutting; slice: carved a roast. b. out a strong niche in the bar code printer labels area.'' |
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