American TonerServ To Acquire Wisconsin-Based Pendl Companies
SANTA ROSA, Calif. — American TonerServ Corp. has entered into a non-binding letter of intent to purchase certain assets representing the retail business of Pendl Companies Inc., headquartered in Brookfield, Wis. Pendl has been providing printer supplies and service to national and regional business customers since 1988.
According to unaudited financial information provided to ATS by Pendl, the retail segment of the business generated approximately $5 million in revenue in 2007. Consideration for the purchase would be determined based on a due diligence review of Pendl's financial statements and other factors.
“We are pleased to announce what we expect to be our sixth acquisition and will pursue completing the transaction to add Pendl to the ATS family of companies,” said Dan Brinker, CEO of ATS. “Our objective is to expand the ATS footprint with strong regional partners like Pendl, and to bring to these businesses opportunities for cost savings and greater operational efficiency. Pendl impressed us with their focus on quality and service, including their network of more than 200 national service providers. We hope to leverage this network to support other ATS customers around the country.”
Gary Pendl, CEO and one of the founders of the Pendl Companies, will continue to run and build the business.
“We like the ATS model and their experienced leadership team. ATS's goals are in alignment with our goals, to continue to provide excellent customer service and grow our sales,” Pendl said. “We look forward to joining their company.”
The acquisition is subject to the completion of due diligence, negotiation and execution of a definitive purchase agreement, the completion of an audit of Pendl's financial statements, as well as customary closing conditions. Additional information related to this transaction will be disclosed upon the execution of a definitive purchase agreement. The LOI provides that the parties will endeavor to complete the transaction within the next 90 days.
“ATS has established access to the newest technology and has built strong back office capabilities,” Brinker said. “With these resources in place, we believe Pendl will see increased profitability and the ability to grow the business more quickly than before.”
American TonerServ Corp. is building a nationwide organization to efficiently serve the printing needs of small-and medium-sized businesses by consolidating leading independent operators in the $6 billion recycled printer cartridge and printer services industry, offering top-quality, environmentally-friendly products and local service teams.
“ATS is actively identifying and evaluating additional acquisition targets,” Brinker said. “At the same time, we are strengthening our ability to provide cost-effective printer supplies and maximizing operational infrastructure to support our rapidly growing business.”
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