Danka Business Systems PLC to Sell Part of its Netherlands Operations; Proceeds to be Used in Furtherance of Refinancing Plan.Business Editors/High-Tech Writers ST. PETERSBURG, Fla.--(BUSINESS WIRE)--Jan. 17, 2003 Danka Business Systems PLC (Nasdaq:DANKY) today announced that it has entered into an Agreement to sell a portion of its business in the Netherlands. This part of the Company's operation sells and services Toshiba branded photocopiers in segments 0-2 (machines with up to 30 pages per minute), fax machines and printers and distributes Toshiba products through dealer relationships. The business, with annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. revenues of approximately $12 million, will be sold to Toshiba TEC Germany Imaging Systems GMBH for the sum of approximately $6.7 Million, subject to certain post-closing adjustments. Peter Williams Peter Williams can mean:
The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. , Europe, stated: "We believe this sale to be highly beneficial for both Danka and Toshiba. It allows Danka to exit a channel that has become less consistent with the Company's strategic goals. Indirect sales for Danka in Europe will now be solely focused through its pan-European Infotec dealer channel that is well established in the Netherlands. At the same time, this business gives Toshiba an established machine base to develop its footprint The amount of geographic space covered by an object. A computer footprint is the desk or floor surface it occupies. A satellite's footprint is the earth area covered by its downlink. See form factor. 1. in these segments in the Netherlands." "The sale is consistent with Danka's continued strategy to divest To deprive or take away. Divest is usually used in reference to the relinquishment of authority, power, property, or title. If, for example, an individual is disinherited, he or she is divested of the right to inherit money. itself of non-strategic businesses and use the proceeds to transition the Company toward future goals," commented Lang Lowrey, Danka's Chief Executive Officer. Mark Wolfinger, Danka's Chief Financial Officer, commented: "We will use the proceeds of this sale to further assist in our already dramatic debt reduction and move that much closer to our ultimate objective of achieving a more efficient, long-term, lower cost financial structure. The execution of initiatives like this continue to place the Company in a better position to seek more attractive financing opportunities for our remaining debt." Danka received $3.2 Million on execution of the Agreement and will receive the balance of the consideration upon closing, which is expected to occur in early March and is subject to completion of certain legal and regulatory steps. About Danka Danka delivers value to clients worldwide by using its expert technical and professional services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. to implement effective document information solutions. As one of the largest independent providers of enterprise imaging systems and services, the company enables choice, convenience, and continuity. Danka's vision is to empower empower verb To encourage or provide a person with the means or information to become involved in solving his/her own problems customers to benefit fully from the convergence of image and document technologies in a connected environment. This approach will strengthen the company's client relationships and expand its strategic value. For more information, visit Danka's 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, Danka's debt reduction initiatives and refinancing Refinancing An extension and/or increase in amount of existing debt. proposals, including the anticipated reduction of its cost of capital, any possible equity offering and the possible purchase by Danka of its senior subordinated notes, 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 that could cause actual results to differ materially from those reflected in the forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. , including the risks identified in Danka's most recent quarterly report on Form 10-Q Form 10-Q See 10-Q. filed with the Securities and Exchange Commission. 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. Danka is a registered trademark of Danka Business Systems PLC. All other trademarks are the property of their respective owners. |
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