Acquisition - Replacement
4imprint Group PLC
2 January 2001
The issuer advises that the following replaces ' The Acquisition' announcement
released today, 02 January 2001, at 0700 under RNS number 5019W.
The changes are as follows: The purchase price has been increased to $12.75
million and extra words on the timing on the shareholders' meeting.
For immediate release 2 January 2001
4IMPRINT TO ACQUIRE ADVENTURES IN ADVERTISING FOR US $12.75M
- to become world's 5th largest distributor of Promotional Products -
4imprint Group plc, ('4imprint'), a leading global distributor of imprinted
promotional products, today announces that it is acquiring Adventures in
Advertising Franchise Inc ('AIA') - subject only to approval by AIA
shareholders in a general meeting which is expected to be held before the end
of January 2001, the world's leading promotional products franchise
organisation, for a total consideration of US $12.75 million in cash, for US
$1 million net assets.
The combined organisation will become the fifth largest promotional products
distributor network in the world and include more than 400 franchised owners
in the US and 600 associates worldwide with total billings exceeding US $200
million.
Adventures in Advertising:
AIA based in Quincy, MA is an international network of individually owned and
operated professional promotional product and corporate apparel
distributorships. AIA ranks in the leading promotional products franchise
organisations in the world. Founded in 1981 as a traditional distributor, AIA
developed and sold its first franchise in December 1994. It now has over 400
franchises across the U.S., Canada and Puerto Rico. Billings for the year 2000
on behalf of its franchisees will approach US $100 million, more than double
the 1999 billings of US$43million. Royalty revenue from the 1999 billings was
US $3 million, resulting in a reported US $705,000 EBITDA, a loss before tax
of US $191,000 with net assets of US$478,000 at 31 December 1999. The
founders of the business, Dan and Kurt Carlson, will continue to use their
expertise to grow the AIA business under long-term service contracts.
The acquisition will provide business executives worldwide with access to more
than 300,000 promotional products and sophisticated online ordering
capabilities, improving the efficiency of order placement, tracking and
delivery. The deal will also give AIA franchises access to 4imprint's Hong
Kong office and its network of Far East suppliers to source large orders.
Dick Nelson, CEO of 4imprint, added:
'By combining 4imprint, the industry's leading direct marketing company, with
a franchise based distributor, we are creating a new business model that gives
customers the power to do business in whichever format they are most
comfortable with, either online, through a salesperson or catalogue. Our
strategy as announced in March this year has been to achieve billings through
our partnership programmes channel of US $140 million by 2004. This agreement
will move us significantly towards fulfilling that commitment.
The blending of 4imprint's direct marketing, technology and Internet expertise
with the professional network of distributors Dan and Kurt Carlson have built
with AIA creates a multi-channel force in the industry.'
Dan Carlson, founder and chairman of AIA, added:
'We are very excited about the opportunities the agreement with 4imprint opens
up to our employees and franchisees. This is an ideal opportunity for our
independent franchise distributors to take their business to the next level.
Our common goal is to be the vendor of choice for our customers and to serve
their needs through direct marketing, using the catalogue or the Internet, or
in-person. We are committed to providing the best service possible.'
For further information:
4imprint Group plc
Dick Nelson, Chief Executive 001 920 203 7272 (after 1.00 pm GMT)
Richard Harrison, Finance Director 01482 867862
Buchanan Communications
Mark Edwards / Alison Cole 020 7466 5000
About 4imprint:
4imprint Group plc, a Manchester, U.K. based supplier of marketing and
promotional products is traded on the London stock exchange under the symbol
FOUR.L. 4imprint has established an American Depositary Receipts (ADR)
programme in the U.S. for U.S.-based investors. 4imprint, North America's
seventh largest distributor of imprinted promotional products is headquartered
in Oshkosh, Wisconsin, where it employs more than 220 people. The 15-year old
company serves more than 150,000 customers worldwide, including all of the
Fortunea 100 Companies. Additional information about 4imprint can be found on
their web site: www.4imprint.com or www.4imprint.co.uk.