DYNCORP CONTINUES COMMERCIAL EXPANSION; BECOMES STOCKHOLDER IN BUSINESS MAIL EXPRESS, INC.
DYNCORP CONTINUES COMMERCIAL EXPANSION; BECOMES STOCKHOLDER IN BUSINESS MAIL EXPRESS, INC. RESTON, Va., May 7 /PRNewswire/ -- DynCorp today announced that it has acquired a 40 percent equity interest in Business Mail Express, Inc. (BME), an electronic mail service company providing nationwide delivery for large volume mailers. BME, which will relocate to the DynCorp headquarters building in Reston, was founded in 1990 by former Postal Service executive Eugene C. Johnson. Johnson currently serves as president of BME. Paul N. Carlin, former postmaster general, serves as chairman of the board and chief operating officer. DynCorp President and CEO Dan R. Bannister noted that the $800 million dollar diversified services firm made the BME investment as part of its plan to build a larger base of commercial business. "This investment is an exciting milestone in our plan to build DynCorp's commercial base in high growth, high profit margin businesses. BME's revenues will exceed $10 million in 1992. It has been growing at a rapid rate in a very large growing market and we expect 1996 revenues could exceed $125 million," said Bannister. DynCorp's prediction was echoed in an independent market analysis report which estimated that the market for BME will reach approximately 2 billion messages by 1996 and that BME should be able to capture 15 percent of that. DynCorp has the option to purchase the remaining 60 percent of BME before 1996. Carlin noted that BME's niche is its ability to expedite delivery of large volumes of mail at reduced cost. "BME has the capacity to reach approximately 60 percent of the addresses within the U.S. within one business day, and 90 percent of the addresses within two business days at rates lower than our competition," said Carlin. Business Mail Express, Inc., gained DynCorp's attention because of its innovative use of a networked electronic distribution and production technology. DynCorp, which has grown its non-DoD high-tech business from $10 million in 1990 to nearly $200 million in 1992, is looking for further expansion in the high-tech commercial and federal services markets. Bannister noted that the company is currently negotiating to acquire two high-tech service companies. The acquisitions, Bannister noted, are part of the company's strategy to systematically reduce its reliance on the Defense Department. In 1988 the company's defense business accounted for 79 percent of its annual revenues. In 1992 that number will drop to 55 percent of DynCorp's expected $900 million annual revenues. Headquartered in Reston, DynCorp is an employee-owned professional and technical services firm providing a broad base of services to government and private industry clients worldwide. -0- 5/7/92 /NOTE: Photos are available upon request./ /CONTACT: Janine Carey, director, corporation communications, DynCorp, 703-264-8733/ CO: DynCorp; Business Mail Express, Inc. ST: Virginia IN: CPR SU:
TW -- DC015 -- 7599 05/07/92 11:50 EDT
|Printer friendly Cite/link Email Feedback|
|Date:||May 7, 1992|
|Previous Article:||COEUR D'ALENE MINES REPORTS FIRST-QUARTER PROFIT|
|Next Article:||MARGARETTEN FINANCIAL REPORTS APRIL MORTGAGE LOAN VOLUME AND APPLICATION ACTIVITY|