Date Posted: 11/2/2006
Deluxe to Acquire The Johnson Group and Its Affiliated Companies
Strategic Acquisition Helps Position Deluxe for Growth in Its Small Business and Financial Institution Segments
ST. PAUL, Minn., Oct. 26 /PRNewswire-FirstCall/ -- Deluxe Corporation (NYSE: DLX - News) announced today that it has purchased the assets of The Johnson Group, an award-winning commercial printing enterprise, and its affiliated companies. The Johnson Group is headquartered in Rockford, Illinois and employs 130 people.
"The Johnson Group's custom, full color, and digital printing expertise and its emerging web-to-print technology strategically fits our growth objectives to expand our capabilities and portfolio of products to our small business and financial institution customers," said Lee Schram, Deluxe's chief executive officer. "We are thrilled to have found such a strategic partner."
Dennis Johnson, chairman and chief executive officer of The Johnson Group, who is retiring with this sale, said, "I am excited about the new opportunities the company will have to grow and better serve its customers." Tonya Meister, president of The Johnson Group, added, "It will enable us to expand our custom and digital printing to include Deluxe's six million small business customers and thousands of financial institutions."
Deluxe paid $16.5 million as part of the transaction and indicated that it does not expect the acquisition to have a significant impact on diluted earnings per share or operating cash flow for the remainder of 2006. On a full year basis, The Johnson Group is expected to generate approximately $22 million of revenue in 2006.
About Johnson Group
The Johnson Group was founded in 1957 and serves its nation-wide customers through a complete menu of full prepress support, one-to-multi-color offset and digital printing, extensive finishing, bindery, mailing, and fulfillment support. The Johnson Group is a leader in the digital arena, providing innovative web-to-print and one-to-one variable data print services. The company will continue to operate under its current names and its headquarters will remain in Rockford, Illinois. For more information about The Johnson Group, visit http://www.johnsongroup.com .
About Deluxe
Deluxe Corporation, through its industry-leading businesses and brands, helps financial institutions and small businesses better manage, promote, and grow their businesses. The company uses direct marketing, distributors, and a North American sales force to provide a wide range of customized products and services: personalized printed items (checks, forms, business cards, stationery, greeting cards, labels, and shipping/packaging supplies), promotional products and merchandising materials, fraud prevention services, and customer retention programs. The Company also sells personalized checks and accessories directly to consumers. For more information about Deluxe, visit http://www.deluxe.com .
Forward-Looking Statements
Statements made in this release concerning the Company's or management's intentions, expectations, or predictions about future results or events are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements reflect management's current expectations or beliefs, and are subject to risks and uncertainties that could cause actual results or events to vary from stated expectations, which variations could be material and adverse. Factors that could produce such a variation include, but are not limited to, the inherent unreliability of earnings, revenue and cash flow predictions due to numerous factors, many of which are beyond the Company's control. Additional information concerning these and other factors that could cause actual results and events to differ materially from the Company's current expectations are contained in the Company's Form 10-K for the year ended December 31, 2005, as updated in the Company's Form 10-Q for the period ended June 30, 2006.
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Source: Deluxe Corporation
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