Checkpoint Systems to acquire Shore to Shore Inc

Checkpoint Systems Inc announced that it has entered into a definitive agreement to acquire Shore to Shore, Inc., including the Adapt Group and related assets. Shore to Shore, headquartered in Centerville, Ohio, is a global retail apparel and footwear product identification business with production locations in 13 countries.

The company designs, manufactures and sells a full line of merchandise identification products including hang tags, price tickets, printed paper tags, pressure sensitive products, woven labels, leather and leather-like labels, heat transfer labels and brand protection and EAS solutions/labels.

The initial purchase price for the all cash acquisition will be $67.95 million less any debt. A contingent purchase price payment of up to $12.50 million may be made if certain financial results are realized for the calendar year ended December 31, 2010. Additionally, a $1.23 million payment will be made for transitional consulting services. The purchase price will be further increased by an additional $6.25 million, contingent upon the successful migration of specified business accounts.

Checkpoint expects the transaction to be accretive to earnings this year. Shore to Shore acquired revenues for 2010 were approximately $75 million.

“The acquisition of Shore to Shore is a further step in Checkpoint’s strategy to become the recognized number two global provider of apparel labeling solutions. Not only does this acquisition put Checkpoint significantly closer to its goal of growing the Apparel Labeling Solutions business to over $400 million by 2013, it also extends our global network of print shops and variable data management capabilities to effectively deliver our RFID-based merchandise visibility solutions,” said Rob van der Merwe, Chairman, President and Chief Executive Officer of Checkpoint Systems.

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