DANKA SELLS OFF LATIN SUBSIDIARIES

[Anonymous]

Danka sells off Latin subsidiaries
Danka
Business Systems PLC has sold its Central and South American
subsidiaries to Toshiba America Business Solutions Inc. for $10 million
in cash.
The purchase price is
subject to a $1 million holdback for a period of up to one year for
potential contingencies, the company said.
The transaction covers Danka’s operations in Puerto Rico, Mexico, Panama, Brazil, Venezuela, and Chile.
Danka intends to concentrate on its United States’ operations and grow its managed print services.
The six subsidiaries sold to Toshiba contributed $30.4 million in
revenue and $1.6 million of operating profit to Danka’s fiscal year
ended March 31, 2005. Danka expects to record an estimated non-cash
loss on the sale of approximately $31 million in the quarter ended
Sept. 30, 2005, approximately two-thirds of which is attributed to the
write-off of non-cash foreign currency cumulative translation
adjustments for the Central and South American business units.
Net proceeds from the sale will be used for working capital and reinvestment purposes, the company said.
St. Petersburg-based Danka  provides office equipment and copiers.

[Author]

September 28, 2005 at 12:30 PM