Product category:
General Print Supplies, Services for Printers
News Release from: The TripleArc Group
Edited by the Printingtalk Editorial
Team on 18 April 2008
Cash Bid To Buy TripleArc - 33.48% In
Favour
In a proposed cash deal that values The TripleArc Group at GBP12.4 million, which is said to be a premium of 135.3 per cent over the closing price of 2.55 pence for each TripleArc share on 15 April.
The board of o2o, together with that of TripleArc are recommending cash offer of six pence per TripleArc share to be made by Olive 1 Limited, which is a wholly owned subsidiary of o2o for all the issued and to be issued share capital of TripleArc The company said that it will form the core of the enlarged group's business services division and it believes that the acquisition is an important first step in the creation by o2o of a significant presence in the business services sector
This article was originally published on Printingtalk on 22 Jul 2004 at 8.00am (UK)
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TripleArc's directors, who have been advised by Europa Partners, said that they consider the terms of the offer to be fair and reasonable.
The directors will unanimously recommend that TripleArc shareholders accept the offer as they have irrevocably undertaken to do or procure to be done for their own beneficial holdings of the company's shares.
They represent 3.21 per cent of the total issued share capital.
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In addition, o2o said it has received irrevocable undertakings from some of the other TripleArc shareholders to accept the offer equivalent to 11.05 per cent of the issued shares.
A non-binding letter of intent has also been received to accept the offer regarding 19.22 per cent of shares.
In total TripleArc said that irrevocable undertakings and letters of intent to accept the offer have now been received by o2o for 33.48 per cent of TripleArc's existing issued share capital.
TripleArc said that o2o is an independent business supplies, managed services and integrated supply chain company operating in the UK and Republic of Ireland.
TripleArc provides print management and business process outsourcing services for printed communications and aims to provide savings and efficiencies to its clients across marketing, corporate and other communications expenditure.
The company said that UK print management and business process outsourcing are significant and growing markets.
The UK print market itself is estimated to be worth more than GBP14 billion and TripleArc operates in product segments that represent a substantial proportion of that, it added.
TripleArc's net debt at December 31 2007 amounted to GBP13.6 million.
The Acquisition of TripleArc is conditional on the approval of o2o shareholders.
Simon Moate, o2o's chief executive officer, said: "TripleArc is a leading player in the print management and business process outsourcing sectors with, we believe, a strong and sustainable business model, providing an excellent platform for growth.
However, its ability to capitalise on growth opportunities has been hampered by historical debt issues.
These issues will immediately be alleviated on acquisition by o2o and we are confident that TripleArc will considerably accelerate our growth in the business services arena." He continued: "The management of TripleArc is very enthusiastic about being part of o2o and we look forward to supporting their ambitious growth plans.
We currently have a small print management offering, which will be integrated in to TripleArc.
This, combined with immediate synergies, gives the enlarged group greater balance with highly complementary products and services." Jason Cromack, TripleArc's chief executive officer, commented: "I believe this deal provides certainty and value for our shareholders and excellent opportunities for our management and employees.
Our businesses will accelerate o2o's existing growth plans as it will provide TripleArc with a wider opportunity to take on larger new business from a position of financial strength that previously eluded us because of our relatively high levels of debt.
There is also a significant opportunity for the enlarged group to benefit from cross-selling its combined services across its customer base and for TripleArc's customers to benefit from the logistics and distribution network of o2o.".
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