TOKYO, Aug. 27 /PRNewswire/ -- Ricoh Company, Ltd. (TSE: 7752, 'RICOH')
(President & CEO: Shiro Kondo) today announced that it has reached a
definitive agreement with IKON Office Solutions, Inc. (NYSE: IKN, 'IKON') to
acquire IKON (the 'Transaction') through RICOH's wholly owned U.S.
distribution subsidiary, Ricoh Americas Corporation ('RAC'). The Transaction
is supported by both RICOH and IKON and has been approved by the Boards of
Directors of the respective organizations.
1. Background
RICOH (headquartered in Tokyo, Japan) is a global leader in imaging
solutions that has brought to the market innovations such as digitalization,
network solutions, and colorization. In the rapidly growing printing and
document solution areas, RICOH's challenge has been to strengthen its channels
for assessing customers' potential needs and making appropriate proposals
based on a customer-driven approach. In the extremely competitive U.S. market,
RICOH is committed to further strengthening its sales and support channels.
As the world's largest independent channel for document management systems
and services, IKON (headquartered in Malvern, Pennsylvania) supplies and
services a wide range of office equipment, such as MFPs (multi-function
printers), fax machines and printers, in the U.S., Canada and the Western
European markets. With over 400 sales and service locations, IKON has a long
track record with Fortune 500 companies among its customers. RICOH has been a
key supplier to IKON, and the relationship between the two companies has a
long history. In addition, IKON also provides professional services and
document outsourcing services to a wide variety of customers.
'IKON has terrific strength in areas that complement RICOH's growth
strategy,' said Shiro Kondo, President and CEO of Ricoh Company, Ltd. 'IKON
has advanced Professional Services capabilities with a long list of satisfied
large customers. IKON is respected as well for its production print sales and
service expertise. We are excited to add the very experienced IKON management
team and the thousands of skilled and dedicated IKON employees to the RICOH
family.'
IKON Chairman and Chief Executive Officer, Matthew J. Espe, said,
'Following an extensive review of our strategic opportunities, our Board
conducted a formal process to evaluate alternatives for the Company, and has
approved this attractive transaction for our shareholders, customers and
employees. The offer represents a 33% premium over IKON's trailing 60-day
average stock price as of market close on August 26th. In addition, combining
with RICOH, one of the world's most respected and innovative companies, will
enable us to strengthen our offerings to customers and create new
opportunities for our employees.'
Espe concluded, 'We remain fully committed to providing the highest
quality of support and service to all our customers.'
As a result of the Transaction, RICOH will strengthen its business
infrastructure in the U.S., Canada and Europe by combining with IKON's strong
sales and service network. RICOH also will gain access to IKON's customer
base, which includes major account customers and government and public sectors
in the U.S. This acquisition is yet another step in RICOH's integrated global
growth strategy.
2. Acquisition Price:
Target: IKON Office Solutions, Inc. (See Appendix)
Estimated Acquisition Price: U.S. $1.617 billion (approx.
