Publicly traded Adsero Corp. announced the completion of its acquisition of Teckn-O-Laser on Feb. 1, 2005, purchasing 100 percent of shares of the Montreal- based toner and inkjet remanufacturer. The completion of the reverse acquisition follows Adsero''s (Nasdaq: ADSO) May 3, 2004, letter of intent that initiated the deal. Teckn-O-Laser will then use its public stock as currency to buy additional companies through acquisition or merger.
The transaction will require approximately US$2.4 million in cash on closing, US$1.6 million in retractable preferred shares, retractable over the next 14 months, US$3.5 million payable over three years based on minimum earnings targets, and 6.5 million common shares of Adsero Corp. representing an estimated 25 percent of the total issued and outstanding stock of Adsero Corp. at closing, and 300,000 options for Adsero stock exercisable at the market price at closing. Six million of the shares are subject to a three-year lock-up agreement.
Founded in 1988 by Yvon Léveillé, Teckn-O-Laser has grown revenues in excess of US$30 million annually. Léveillé, who signed a three-year management contract to remain with the company after the sale, says he has a highly focused vision to continue the company''s growth into a $500 million conglomerate specializing in e-waste solutions for printers, print cartridges, computers, cell phones and other electronic devices. Léveillé is expected to spend approximately 15 to 25 percent of his time lobbying the investment community about his company and its vision for the future. As part of the agreement, Léveillé will take over as president and CEO of Adsero.
"We can now begin executing our plan to become the dominant player within the cartridge aftermarket industry,” Léveillé said “I believe the timing is right for consolidation, as the industry is currently very fragmented with a large number of small players competing in a segment which is estimated to grow to in excess of US$9 billion by 2006. In order to compete, players will need to achieve economies of scale and develop expanded sales channels. We feel this provides a huge opportunity to establish Adsero as the dominant player within this industry."
To learn more about Adsero''s acquisition of Teckn-O-Laser and read about exit strategies for companies within the imaging industry visit: http://rechargermag.com/article.asp?id=200501054
