"A focused investment for future business growth"?
Presstek has signed an agreement to acquire the A.B. Dick Company, the 120-year-old worldwide supplier of graphic-arts equipment and supplies that filed for bankruptcy July 13.
"The acquisition is designed to extend the distribution capability and channel support for Presstek, and to drive an increased level of digital technology and services by leveraging Presstek's industry-leading technology portfolio," says Edward J. Marino, Presstek president and CEO. "As part of Presstek's market-focused and customer-oriented strategic direction, this acquisition represents a focused investment for future business growth."
A.B. Dick manufactures and markets equipment and supplies for all stages of document creation"?prepress, press, and postpress"?including wide-format printers, inks, and media. The company also provides consulting services and support.
During the Chapter 11 process, A.B. Dick and all its units will continue to manufacture and deliver products and provide services to customers as usual. "A.B. Dick has been working to grow and strengthen operations, and we had hoped to further develop our business through a strategic transaction outside the bankruptcy process," says Frank Zaffino, chairman of Paragon Corporate Holdings, A.B. Dick's parent company. "Unfortunately, industry conditions have combined to severely pressure cash flow, and this filing has become necessary. The Chapter 11 filing, together with [$7 million in] debtor-in-possession financing, should allow A.B. Dick to operate with no interruption while we finalize a sale."
Presstek anticipates the sale, valued at approximately $40 million, to be complete in 90 days. It intends to operate the A.B. Dick business as a wholly owned subsidiary based in Niles, IL. (A.B. Dick: www.abdick.com; Presstek: www.presstek.com)