Coinstar to Acquire American Coin Merchandising, Inc.
American Coin Merchandising, Inc. ("ACMI"), the leading owner and operator of coin-operated amusement vending equipment in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , today announced a definitive agreement to be acquired by Coinstar, Inc. , the leader in self- service coin counting and supplier of e-payment services for $235 million in cash. Pursuant to the terms of the definitive agreement, the publicly traded Trust Preferred securities of ACMI are to be redeemed at par plus accrued interest Accrued Interest
The interest that has accumulated on a bond since the last interest payment up to but not including the settlement date.
There are two methods for calculating accrued interest:
1) 360-day year method, used for corporate and municipal bonds. following the closing of the transaction.
The transaction is expected to close in the third quarter of this year. Closing is dependent on certain customary conditions including obtaining Hart- Scott-Rodino and certain other governmental approvals, securing certain contractual consents, and Coinstar's ability to finance this transaction.
Dave Cole will remain the chief executive officer of Coinstar, Inc. Randy Fagundo, currently the chief executive officer of ACMI, will become the president of ACMI and will report directly to Mr. Cole. Mr. Fagundo will continue to lead the amusement vending business.
"We are delighted to be joining forces with Coinstar and see great value in their technologically-advanced network and established retail relationships," said Randy Fagundo, Chief Executive Officer of American Coin Merchandising, Inc. "Tremendous opportunity exists as we combine our areas of expertise and leverage our ability to cross-sell products into a broadened customer base."
"We are very excited about moving forward with the acquisition of ACMI. We believe that the combined companies will diversify Coinstar's business and greatly benefit shareholders," said Dave Cole, Chief Executive Officer of Coinstar, Inc. "ACMI is a leader in self-service amusement vending with an extensive distribution network, a strong and growing revenue stream, and customer-focused culture. The combined strengths of the two companies will allow us to penetrate new classes of trade and provide retailers with a single source for a range of front-end consumer services Consumer Services refers to the formulation, deformulation, technical consulting and testing of most consumer products, such as food, herbs, beverages, vitamins, pharmaceuticals, cosmetics, hair products, household cleaners, [paints, plastics, metals, waxes, coatings, minerals, ."
About American Coin Merchandising, Inc.
ACMI is the leading owner/operator and franchisor of coin-operated amusement vending equipment placed at retail locations. ACMI has placed over 167,000 pieces of vending equipment at over 18,000 retail locations. ACMI's portfolio of amusement vending equipment consists predominantly of redemption machines such as skill cranes, bulk vending Bulk Vending is the sale of unsorted confections, nuts, gumballs, toys and novelties (in capsules) selected at random and dispensed generally through non-electrically operated vending machines. equipment that dispenses candy and novelty items, kiddie rides Kiddie rides are coin-operated rides that appear in amusement parks, malls as well as outside supermarkets and large stores such as K-mart and Sav-On. Once common outside smaller establishments like grocery stores, few grocery stores have one or more kiddie rides in their premises and video games.
About Coinstar, Inc.
Coinstar, Inc. owns and operates a network of nearly 11,000 automated self-service coin-counting machines that provide consumers with a convenient means to convert loose coins into cash. In addition, Coinstar distributes prepaid products through point-of-sale and non-coin-counting kiosks in over 13,000 drugstores, universities, shopping malls and convenience stores, bringing the total to nearly 24,000 distribution points throughout the United States, Canada and the United Kingdom. Combined, Coinstar and ACMI will have over 40,000 distribution points.
CONTACT: Investor Relations Investor relations
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