Checkpoint Systems to acquire Shore to Shore Inc
Checkpoint Systems Inc announced that it has entered into a definitive agreement to acquire Shore to Shore, Inc., including the Adapt Group and related assets. Shore to Shore, headquartered in Centerville, Ohio, is a global retail apparel and footwear product identification business with production locations in 13 countries.
The company designs, manufactures and sells a full line of merchandise identification products including hang tags, price tickets, printed paper tags, pressure sensitive products, woven labels, leather and leather-like labels, heat transfer labels and brand protection and EAS solutions/labels.
The initial purchase price for the all cash acquisition will be $67.95 million less any debt. A contingent purchase price payment of up to $12.50 million may be made if certain financial results are realized for the calendar year ended December 31, 2010. Additionally, a $1.23 million payment will be made for transitional consulting services. The purchase price will be further increased by an additional $6.25 million, contingent upon the successful migration of specified business accounts.
Checkpoint expects the transaction to be accretive to earnings this year. Shore to Shore acquired revenues for 2010 were approximately $75 million.
“The acquisition of Shore to Shore is a further step in Checkpoint's strategy to become the recognized number two global provider of apparel labeling solutions. Not only does this acquisition put Checkpoint significantly closer to its goal of growing the Apparel Labeling Solutions business to over $400 million by 2013, it also extends our global network of print shops and variable data management capabilities to effectively deliver our RFID-based merchandise visibility solutions,” said Rob van der Merwe, Chairman, President and Chief Executive Officer of Checkpoint Systems.
Mr. van der Merwe continued, “We are excited to welcome the Shore to Shore team to Checkpoint. The company's reputation as a technology and innovation leader is well known to the apparel and retail industry.”
STS offers a full line of merchandise identification products including graphic hangtags, woven labels, electronic article surveillance, leather patches, pocket flashers, price tickets, printed fabric labels, sizer strips, rubber patches and packaging.
Checkpoint Systems is a global leader in shrink management, merchandise visibility and apparel labeling solutions. Checkpoint enables retailers and their suppliers to reduce shrink, improve shelf availability and leverage real-time data to achieve operational excellence. Checkpoint solutions are built upon 40 years of RF technology expertise, diverse shrink management offerings, a broad portfolio of apparel labeling solutions, market-leading RFID applications, innovative high-theft solutions and its Web-based Check-Net data management platform.
Checkpoint Systems Inc