Venlo, The Netherlands / Fiskeville, USA, July 3, 2008 - Océ N.V. (www.oce.com), an international leader in digital document management, today announced it has signed a contract to sell the coating-related
assets of its wholly-owned subsidiary Arkwright Inc. to the prominent Italian paper and coated media manufacturer Diatec Group (www.diatecgroup.com).
Arkwright Inc., based in Fiskeville (Rhode Island), was founded in 1810. It is a technology-driven company that develops, coats, converts and markets high performance digital imaging materials to consumer and commercial segments. Arkwright runs a European sales outlet from The Netherlands in
addition to its US operations.
By acquiring Arkwright’s coating assets, Diatec Group adds a US media coating footprint to its European media coating activities. Océ will continue to sell print media, a strategic cornerstone of Océ’s hardware business.
Transfer of US activities finalized in Q3 Arkwright Inc. and Arkwright Europe B.V. generate annualized sales of approximately USD 65 million
(EUR 45 million) and employ over 200 associates, expected to transfer to the Diatec Group. Océ sells approximately € 27.4 million assets.The net cash flow expected from this transaction is EUR 17.3 million. Its anticipated impact on operating income is minus EUR 4.3 million, in addition to minus
EUR 18.0 million in the form of currency translation differences that had to date been included under group equity in the balance sheet.
Under IFRS, the translation differences that relate to the activities being sold are charged to the income statement. The transfer of the coating activity in the United States will take place in the third quarter.
The European activities will be transferred later this year.
‘Transaction fully in line with strategy,’ says Océ CEO Commenting on the transaction, Océ Chief Executive Officer Rokus van Iperen said: ‘At Océ, our
strategy focuses on strengthening distribution power, innovating our product and service portfolio and enhancing operational excellence. After serious reflection, we concluded that media coating is no longer a core activity of Océ. In recent years, we have concluded several transactions with the Diatec Group. The divestment announced today further supports the existing business relationship between our companies.
We are delighted that the coating activities of Arkwright have been acquired by a strategic partner able to generate new growth opportunities.’
Océ N.V.
July 3, 2008