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 user 2005-09-28 at 12:30:00 pm Views: 85
  • #12968

    Danka sellsoff Latin subsidiaries

    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.