- Acquisition supports strategy to leverage a common platform across
multiple brands, each brand with a distinct value proposition and
customer focus -
VENLO, the Netherlands--(BUSINESS WIRE)--Mar. 18, 2015--
Cimpress N.V. (Nasdaq: CMPR), the world leader in mass customization,
announced today it has entered into a definitive agreement to acquire
druck.at Druck- und Handelsgesellschaft mbH (druck.at), one of the
leading web-to-print businesses in Austria.
The acquisition supports Cimpress’ strategy of building a
software-enabled operational platform that aggregates and optimizes the
supply chain and production of mass customized products such as signage,
printing, apparel and promotional products. Cimpress goes to market via
a portfolio of specialized and focused brands and Druck.at aligns with
the Cimpress strategy in this regard as well. Druck.at, founded in 2001,
produces a wide variety of high quality printed products that are sold
both directly to small and medium business customers and through
resellers such as graphic designers, print brokers, and local print
shops.
“We believe Druck.at will be a great addition to Cimpress,” said Robert
Keane, president and chief executive officer of Cimpress. “The Druck.at
team’s intimate understanding of Austrian web-to-print customers enables
it to offer them great quality, fast delivery, and a wide and deep
selection of products. We plan to help them build on this heritage by
leveraging Cimpress’ scale advantages and by expanding the Druck.at
product selection even further.”
Peter Kolb, Druck.at chief executive officer said, “We are very excited
to join Cimpress. We anticipate benefiting from Cimpress’ global
operational and supply chain advantages while maintaining the distinct
Druck.at brand and focus on the needs of Austrian customers. This unique
combination should allow us to improve our customer value and customer
satisfaction even further.”
Financial Terms of Agreement
The base purchase price of the transaction is €23.3 million, including
€20 million payable in cash upon the close of the transaction, and a
deferred payment of €3.3 million to be paid in cash or stock in 2017 at
the earliest.
Cimpress plans to fund the transaction using its existing debt facility.
Cimpress expects this transaction to have an immaterial impact on
financial results in fiscal 2015.
In the trailing twelve months ended January 31, 2015, Druck.at revenue
was approximately €34 million, reflecting year-over-year growth of about
15 percent. Druck.at net income in this period was approximately €2
million and its EBITDA was approximately €3.6 million.
Subject to satisfaction of various closing conditions including
antitrust clearance, Cimpress expects the transaction to close during
its fourth fiscal quarter of 2015.
About Cimpress
Cimpress N.V. (Nasdaq: CMPR) is the world leader in mass customization.
For 20 years, the company has focused on developing software and
manufacturing capabilities that transform traditional markets in order
to make customized products accessible and affordable to everyone.
Cimpress’ portfolio of brands includes Vistaprint, Albelli,
Drukwerkdeal, Pixartprinting and others. That portfolio serves multiple
customer segments across many applications for mass customization. The
company produces more than 80 million unique products a year via its
network of computer integrated manufacturing facilities. To learn more,
visit http://www.cimpress.com.
About Druck.at
Druck.at, founded in 2001, is a provider of customized web-to-print
products in the Austrian market. Druck.at is headquartered in
Leobersdorf, Austria and has approximately 240 employees. The company
serves the small business market direct to consumer, as well as through
intermediary resellers, and offers product selection across a wide array
of categories including small and large format business products.
This press release contains statements about our future expectations,
plans and prospects of our business that constitute forward-looking
statements for purposes of the safe harbor provisions under the United
States Private Securities Litigation Reform Act of 1995, including but
not limited to the closing of Cimpress’ acquisition of Druck.at and the
effects of the acquisition on Cimpress’ financial results and both
companies’ businesses. Actual results may differ materially from those
indicated by these forward-looking statements. If either company fails
to satisfy the conditions to the closing of the transaction, then the
acquisition may be delayed or may not close at all. In addition, the
acquisition may fail to meet the companies’ business and financial
expectations if, among other factors, Druck.at fails to grow its
business, revenue, or markets as we expect; Druck.at fails to achieve or
maintain profitability; the companies fail to retain their current
customers and attract new customers; the companies fail to develop new
and enhanced products and services; key employees of Cimpress or
Druck.at leave the company; Cimpress fails to make planned investments
in its or the Druck.at business or those investments do not have the
anticipated effects on the companies’ businesses; Cimpress fails to
identify and address the causes of its revenue weakness in Europe;
Cimpress or Druck.at fail to manage the growth and development of their
businesses and operations; competitors succeed in taking sales away from
the companies’ products and services; or there are unfavorable changes
in currency exchange rates or general economic conditions. You can also
find other factors described in our Form 10-Q for the fiscal quarter
ended December 31, 2014 and the other documents we periodically file
with the U.S. Securities and Exchange Commission.
In addition, the statements and projections in this press release
represent our expectations and beliefs as of the date of this press
release, and subsequent events and developments may cause these
expectations, beliefs, and projections to change. We specifically
disclaim any obligation to update any forward-looking statements. These
forward-looking statements should not be relied upon as representing our
expectations or beliefs as of any date subsequent to the date of this
press release.
Cimpress and the Cimpress logo are trademarks of Cimpress N.V. or its
subsidiaries. All other brand and product names appearing on this
announcement may be trademarks or registered trademarks of their
respective holders.
Source: Cimpress
Cimpress N.V.
Investor Relations:
Meredith Burns,
+1-781-652-6480
ir@cimpress.com
or
Media
Relations:
Cheryl Wadsworth, +1-781-690-2120
mediarelations@cimpress.com