Printer Friendly

DANKA ANNOUNCES AGREEMENTS TO ACQUIRE DEALERS WITH $21 MILLION IN REVENUE

 ST. PETERSBURG, Fla., June 29 /PRNewswire/ -- Danka Business Systems PLC (NASDAQ: DANKY), the second largest independent distributor of office equipment and related supplies and services announced it has reached agreements to acquire Layne's Copy Product Company ("Layne's"), Business Copy Products Ltd. ("BCP"), Midwest Toner Distributors, Inc. and its five affiliated companies ("Midwest"). The three acquisitions will add $21 million in revenues to Danka's existing operations.
 Layne's, based in Danville, Va., has branches in Danville, Roanoke and Lynchburg, Va. For the year ended Dec. 31, 1992, Layne's reported revenues of $5.9 million and pre-tax profits of $532,000. Danka will issue ordinary shares for the outstanding stock of Layne's in a transaction valued at $2.9 million. The number of Danka shares to be issued will be determined based on the average closing price of Danka's stock for the period June 17, 1993, to June 30, 1993. The transaction is expected to close on July 1, 1993. The Layne's acquisition will be integrated with Danka's four existing operations in the Virginia region to expand its revenue base in the state to over $18 million.
 BCP, a Minolta and Savin copier dealer in Lubbock, Texas reported revenues of $2.8 million and pre-tax profits of $400,000 for its most recent fiscal year. Danka will pay $1.35 million in cash for the assets and assume certain liabilities in a transaction which is expected to close on July 1, 1993. The BCP acquisition will be integrated with Danka's 12 existing branches in Texas to bring Danka's revenue base in the state to $40 million.
 Midwest Toner, an authorized Sharp copier distributor in 12 midwestern states, operates out of a distribution center in St. Louis, Mo. Midwest also has statewide and regional retail coverage through its affiliate companies and branches in St. Louis, Springfield, Joplin and Jefferson City, Mo., and Peoria, Ill., and Kansas City, Kansas. For its most recent year, Midwest reported $i?on in wholesale revenues and $5 million in retail revenues with pretax profits of approximately $500,000. Danka will issue 209,000 ordinary shares for Midwest Toner Distributors, Inc. and pay $1,135,000 for the outstanding stock of its affiliated companies. The acquisition will be effective July 1, 1993.
 Daniel Doyle, Danka's chief executive officer, commented on the acquisitions, "Layne's is an integral step in developing our Mid- Atlantic branch network. Their reputation for providing quality service and their distribution of the Canon product line will strengthen our position in Virginia. Business Copy Products is the premier dealer in Lubbock and this acquisition will make Danka the dominant dealer in town. The acquisition also makes Danka one of the strongest copier service organizations in Texas. Midwest has an excellent wholesale distribution network with solid management and a strong product line. Additionally, Midwest's retail operations provide us with statewide coverage in Missouri and further growth opportunities in the midwest."
 The transactions announced today bring the total number of acquisitions announced by Danka since April 1, 1993 to seven. The acquired businesses have annual revenues totaling $73 million. The acquisitions strengthen Danka's branch network in Texas and Virginia, establish retail coverage throughout Missouri and provide Danka with a wholesale distribution center in the midwest United States.
 -0- 6/29/93
 /CONTACT: William Freeman, 813-576-6003, or Paul G. Dumond, 011-44-71-935-4650 (London), both of Danka Business Systems PLC/
 (DANKY)


CO: Danka Business Systems PLC; Layne's Copy Product Company; Business
 Copy Products Ltd.; Midwest Toner Distributors, Inc. ST: Florida, Virginia, Texas, Missouri IN: SU: TNM


AW-MM -- FL003 -- 6578 06/29/93 09:13 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jun 29, 1993
Words:592
Previous Article:SWISHER INTERNATIONAL RETAINS CARL THOMPSON ASSOCIATES
Next Article:SUNSHINE-JR. STORES FILES ANNUAL REPORT WITH THE SECURITIES AND EXCHANGE COMMISSION
Topics:


Related Articles
DANKA BUSINESS SYSTEMS ANNOUNCES THE AGREEMENT TO ACQUIRE UNI-COPY CORP.: FLORIDA FIRM ALSO ACQUIRES ALABAMA AND TENNESSEE DEALERSHIPS
DANKA ENTERS EUROPE WITH ACQUISITION OF SAINT GROUP PLC
DANKA ENTERS EUROPE WITH ACQUISITION OF SAINT GROUP PLC
DANKA ACQUIRES $28 MILLION DEALER IN CHICAGO
ALCO AND DANKA SHARE STRATEGIES AT EMERGING TECHNOLOGIES EXPO '95
ALCO STANDARD MAKES RECOMMENDED OFFER FOR SOUTHERN BUSINESS GROUP
Shareholders File Suit Against Danka Business Systems, PLC (DANKY) and Certain Officers and Directors Alleging Material Misstatements
Information Leasing Corporation Announces Agreement with Danka Business Systems PLC.
Ricoh Europe Acquires European Operations of Danka Business Systems.
Konica Minolta Acquires Danka Office Imaging.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters