FRAMINGHAM, Mass., Jul 9, 2002 (BUSINESS WIRE) -- Staples, Inc. (Nasdaq: SPLS)
announced today a definitive agreement to purchase Medical Arts Press, Inc.
Staples will purchase Medical Arts Press for $385 million in an all cash
transaction. The transaction is expected to be completed during the summer.
"Expanding Staples' offering in vertical markets will build our relationships
with new and existing customers, growing our industry-leading delivery
business," said Ron Sargent, Staples President and Chief Executive Officer. "The
acquisition of Medical Arts Press builds on our expertise serving key industries
including the medical profession, the largest vertical market in the U.S."
Staples expects the purchase to be neutral to slightly accretive to earnings in
2002, and accretive to earnings in 2003 by $0.01 to $0.02 per share.
Based in Minneapolis, Medical Arts Press recorded approximately $168 million in
revenues in 2001. Founded in 1950, the company is a leading direct marketer of
specialized printed office products and practice-related supplies to healthcare
practices and currently serves more than 300,000 customers. It also operates
SmileMakers, the largest direct marketer of children's giveaway items catering
to medical, dental and educational markets, and Hayes Marketing, Inc., (HMI), a
direct marketer and manufacturer of marketing-related products to chiropractors,
dentists and eye care professionals.
"Joining the Staples' family will make it easier for our customers to obtain
everything they need to run their practices," said Steven Wexler, Chief
Executive Officer of Medical Arts Press. "We will continue to deliver on our
commitment to provide superior service and quality products. Our customers will
benefit from synergies with Staples' infrastructure, access new points of
distribution and utilize Quill's expertise working with healthcare
Medical Arts Press will continue to operate under its own name and become part
of Staples' North American Delivery business. Steven Wexler will remain with the
company and report to Larry Morse, President of Quill. Medical Arts Press will
maintain its headquarters and facilities.
Staples will host a live Internet broadcast of a conference call today at 10:00
a.m. Eastern discussing details of this acquisition. Individuals may access the
broadcast from Staples' Web site directly at http://investor.staples.com. A
replay of the conference call will be available at http://investor.staples.com
from 1:30 p.m. Eastern on July 9, through midnight on Tuesday, July 16.
Staples, Inc. is an $11 billion retailer of office supplies, business services,
furniture and technology to consumers and businesses from home-based businesses
to Fortune 500 companies in the United States, Canada, the United Kingdom,
Germany, the Netherlands and Portugal. Headquartered outside Boston, Staples
invented the office superstore concept and today is the largest operator of
office superstores in the world. The company has approximately 53,000 associates
serving customers through more than 1,400 office superstores, mail order
catalogs, e-commerce and a contract business. More information about the company
is available at http://www.staples.com.
Certain information contained in this news release constitutes forward-looking
statements for purposes of the safe harbor provisions of The Private Securities
Litigation Reform Act of 1995. Actual results may differ materially from those
indicated by such forward-looking statements as a result of risks and
uncertainties, including but not limited to: Staples' market is highly
competitive and Staples may not continue to compete successfully; Staples may be
unable to continue to successfully open new stores; Staples' new Dover format
store may not be successful; Staples' quarterly operating results are subject to
significant fluctuation impacted by the extent to which sales in new stores
result in the loss of sales in existing stores, the mix of products sold,
pricing actions of competitors, the level of advertising and promotional
expenses and seasonality; Staples' operating results may be impacted by changes
and uncertainty in the economy; Staples' stock price may fluctuate based on
market expectations; Staples' growth may continue to strain operations; Staples'
European operations may not become profitable; Staples' International operations
expose Staples to the unique risks inherent in foreign operations; Staples may
be unable to obtain adequate future financing; and those factors discussed in
Staples' Annual Report on Form 10-K for the year ending February 2, 2002, which
is on file with the Securities and Exchange Commission. In addition, any
forward-looking statements represent our estimates only as of today and should
not be relied upon as representing our estimates as of any subsequent date.
While we may elect to update forward-looking statements at some point in the
future, we specifically disclaim any obligation to do so, even if our estimates
Laurel Lefebvre, 508-253-4080
Director, Investor Relations
Deborah Hohler, 508-253-8509
Public Relations Manager