|  | | Ricoh to Acquire Danka’s European Businesses
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| | Amstelveen, The Netherlands, October 12, 2006 – Ricoh Europe B.V. (“REBV”), a subsidiary of Ricoh Company, Ltd., today announced that it has entered into a definitive agreement with Danka Business Systems PLC (“Danka”) to acquire Danka’s European businesses for a purchase price in cash in the amount of approximately U.S.$ 210 million (the “Transaction”). |
The closing of the Transaction will be subject to a number of conditions, including the obtaining of requisite competition approvals and the shareholders approval of Danka. The Target Companies to be acquired by REBV are based in 12 countries in Western Europe: in the United Kingdom, Spain, France, Switzerland, Italy, Austria, Germany, Belgium, the Netherlands, Denmark, Sweden and Norway. These companies sell office equipment, the majority of which is manufactured by Ricoh, and provide after sales services and supplies. REBV will also acquire Danka Office Products BV, Danka’s dealer channel in Europe. By the Transaction, the Ricoh Group can strengthen its sales and service force in major countries in Europe. Ricoh and Danka strongly believe the Transaction will result in providing better service to the customers and increase customer satisfaction. “Danka Europe possesses a direct and indirect sales and service network in major European countries. By acquiring Danka Europe, the Ricoh Group in Europe will be able to retain and expand its presence in Europe, and reinforce its sales and service network. The Ricoh Group in Europe will further promote business in high volume products, strengthen major account sales, and acquire further Total Document Volume.” said Mr. Shiro “Simon” Sasaki, Chairman and CEO of Ricoh Europe B.V. “REBV and Danka Europe have a long relationship in OEM under the Infotec brand, which is well acknowledged in the European market. Also, members of Danka Europe have a good knowledge of Ricoh products, and REBV is familiar with the culture and business style of Danka, to enable easier synergy. By this acquisition, we will be able to enhance value-added service to our customers in Europe.” Mr. A.D. Frazier, Danka's Chairman and Chief Executive Officer, said, “We are pleased that our long working relationship with Ricoh in Europe has led to this important transaction. The sale to Ricoh of our mature and successful Europe-based operations, which represents roughly half of our current total sales and operating profit, is a major step forward in our previously announced plan to release value through selected asset sales. The proceeds from the sale will help reduce our current indebtedness and enable us to focus on our U.S.-based business where we believe the growth opportunities are substantial.” Revenues from Danka’s European operations totalled over $520 million (approximately €430 million), in the fiscal year ended March 31, 2006. REBV is aiming to maintain and maximise the sales revenue of Infotec brand by enhancing customer value. |
About Ricoh Europe B.V.
Ricoh Europe B.V. is the European headquarters of Ricoh Company Ltd., a leading global manufacturer of office equipment, located in Amstelveen, the Netherlands. It is responsible for marketing, sales and service of Ricoh products in Europe, the Middle East and Africa. In Europe, Ricoh has three manufacturing sites: two at Ricoh UK Products Ltd. Telford, UK; GR Advanced Materials Ltd., Stirling, UK; and Ricoh Industrie France S.A., Colmar, France. In addition, the Ricoh European Group comprises sales subsidiaries and affiliates in 21 countries. In the fiscal year ended March 31, 2006, revenues from Ricoh’s European operations totalled over € 3.15 billion, accounting for 22.7% of the company’s global revenues. Ricoh’s worldwide sales increased by 5.6% totalling ¥1,915 billion (€ 13.9 billion). About Danka Business Systems PLC
Danka is one of the largest independent global suppliers of office imaging systems. For 30 years Danka has provided its customers with the equipment, supplies, software and integrated services and support they need to address their print, copy and document workflow requirements. Danka delivers these comprehensive document solutions through a consultative model designed to improve business processes, reduce costs and increase productivity that drives customer value and satisfaction. Danka services customers directly in 50 US markets and in 12 European countries, as well as indirectly through an established dealer operation in Europe. Enquiries
Ricoh Europe B.V.
Peter T. Van der Kaag
Tel.: +31 (0)20 54 74 153
Fax: +31 (0)20 54 74 222
E-mail: postmaster@ricoh-europe.com [Advisor]
Advisers to Ricoh Group:
KPMG LLP
Cleary Gottlieb Steen & Hamilton LLP
Buren van Velzen Guelen N.V.
Nomura Securities Co., Ltd. Above advisers are acting as advisers exclusively for Ricoh Group, and no one else in connection with the Transaction and will not be responsible to anyone other than Ricoh Group for providing the protections afforded to customers of above advisers nor for providing advice in relation to the Transaction.
This announcement is not intended to and does not constitute, or form any part of, an offer to sell or an invitation to purchase any securities or the solicitation of any vote or approval in any jurisdiction pursuant to the Transaction or otherwise. | | |
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