Datalogic S.p.A. Agrees To Acquire PSC Inc.
Datalogic S.p.A. (DAL.MI), a leading manufacturer in the Auto ID industry based in Bologna, Italy, has announced an agreement to purchase PSC Inc. from private investment firm, Littlejohn & Co., LLC.
Under the agreement, PSC will become a wholly-owned subsidiary of Datalogic. Datalogic has indicated that PSC will continue as a stand-alone company so as to preserve each company's brand identity in the marketplace. The combined companies will benefit from increased global market presence, accelerated growth rates, a broader technology base, and increased management depth. Both companies are healthy financially and do not need to rely on operational synergies to rationalize the investment.
Datalogic intends to keep the PSC operation intact and operating in a "business as usual" fashion. "The increasing market presence and strong management team of PSC were key reasons for our interest in PSC," said Roberto Tunioli, CEO of Datalogic. "We want PSC to continue to leverage its strong team across all current markets. Moreover, with this acquisition, we reinforce our commitment to the retail market and in geographic areas such as the United States."
"This union provides an opportunity for both companies to benefit" said Jack Farrell, CEO of PSC. "Littlejohn helped rebuild PSC; the resources and commitment of Datalogic, combined with the global presence of PSC create a combined company with greater capabilities than either company has as independent businesses. We are very excited about the potential for accelerated growth and continued increases in market position in our industry."
Both companies are showing impressive growth. PSC has grown from $169 million in 2002 to approximately $250 million forecasted for 2005. Datalogic has exhibited recent strong growth with revenue growing from €118 million in 2002 to €148 million in 2004. For 2005 year-to-date, revenue has increased by 29% over 2004, a portion of which is due to other acquisitions.
Both companies plan to retain their existing management and PSC will continue to operate from its Eugene, Oregon (USA) headquarters.
About Datalogic
Datalogic is the largest European manufacturer of CCD and laser-based bar code readers and mobile computers. Datalogic is present in the promising RFID market via its subsidiary Escort Memory Systems Inc. (Scotts Valley, California), with a leading position in the automotive sector, electronics manufacturers and warehouse management systems (WMS). In addition, with the recent acquisition of Laservall, the Group has entered the laser marking sector, which features extensive applications and outstanding growth prospects. Also, at its Informatics subsidiary in Plano, Texas, the company offers a broad array of software and hardware solutions which serve the emerging small business segment. Datalogic, with its headquarters in Bologna, Italy, is quoted on the Milan Stock Exchange, and employs approximately 979 staff world-wide.
The company is directly present in Australia, Austria, Denmark, Finland, France, Germany, Great Britain, Hong Kong, Italy, Japan, the Netherlands, Spain, Sweden and the USA. In order to promote its products and improve the quality of its service to all its customers, Datalogic has developed a wide network of partners in over 40 countries, selected and qualified in order to offer services and solutions up to the highest level in the industry. For more information, please visit http://www.datalogic.com.
About PSC Inc.
PSC Inc. is a global provider of breakthrough data-capture products and services. Wired or wireless, PSC® products service multiple industries including the retail, manufacturing, distribution, transportation and logistics sectors. PSC offers a broad array of products and services including retail automation, automated data collection and mobile & wireless devices.
PSC and the PSC logo are registered trademarks of PSC Inc. All other brand and product names may be trademarks of their respective companies. With a presence in over 100 countries, PSC's headquarters and major manufacturing facility is located in Eugene, Oregon (USA), while sales and service offices are located throughout the Americas, Europe, Asia and Australia. For more information, please visit www.psc.com or call 1-800-695-5700 or 541-683-5700.
About Littlejohn & Co., LLC
Founded in 1996, Littlejohn and Co., LLC is a private equity firm that makes control equity investments in mid-sized companies that are undergoing a fundamental change in strategy, operations or growth that can benefit from its operational and strategic approach. The firm is based in Greenwich, Connecticut (USA). For more information, please visit www.littlejohnllc.com.