Acquisition of SIDEP and Asialco Builds on Strategic Initiative to Expand Asian Presence
THOROFARE, N.J .-- Nov. 12, 2007--Checkpoint Systems, Inc. (NYSE: CKP), a leading manufacturer and marketer of shrink management solutions for the retail industry and its supply chain, today announced that it has acquired SIDEP, a provider of Radio Frequency (RF) Electronic Article Surveillance (EAS) products.
SIDEP is an established supplier of EAS systems and employs more than 140 people with the majority located in China. SIDEP will help Checkpoint increase market penetration in emerging Asian markets, especially in China.
In addition, SIDEP is the majority owner of Shanghai Asialco Electronics Co., Ltd. (Asialco), a China based manufacturer of RF-EAS labels. Upon closing the acquisition of SIDEP, Checkpoint also acquired the remaining interest in Asialco from its minority shareholders. With facilities in Shanghai, China, Asialco will significantly increase Checkpoint's label manufacturing capacity to help meet the growing demand in emerging Asian markets. Asialco employs more than 200 people.
Combined, the transactions have a total value of approximately $37 million. The acquisitions are expected to add approximately $20 million of annual revenue and be neutral to Checkpoint's earnings in 2008.
"The acquisition of SIDEP and Asialco significantly increases the direct operational presence Checkpoint established in China three years ago," notes George Off, Chairman and CEO, Checkpoint Systems, Inc. "The acquisition adds to Checkpoint's China infrastructure, providing an additional direct sales and service organization. It also accelerates our timetable to increase manufacturing capabilities in China, in a cost effective manner. We now have more than 600 employees in Greater China, enabling us to better serve this promising geographical market."
"With the acquisitions of SIDEP and Asialco, and the recently announced acquisition of the Alpha S3 product line, we are now focused on growing our core business and executing our strategy in the coming year," concluded Mr. Off.
Checkpoint Systems, Inc.
Checkpoint Systems, Inc. is the leading supplier of retail shrink management solutions. Checkpoint's global team helps retailers - and their suppliers - reduce theft, increase inventory visibility and provide consumers with greater merchandise availability through the company's rapidly evolving RF technology, expanding shrink management offerings and Check-Net labeling solutions. Checkpoint has more than one million RF devices installed in stores today and has secured more than 100 billion products. Scaling cost efficiently, Checkpoint's solutions provide increased revenues and profits to a fast-growing community of successful retailers and a superior experience for their consumers. Listed on the NYSE (NYSE:CKP), Checkpoint operates in every major geographic market and employs 3,200 people worldwide. For more information, visit www.checkpointsystems.com.