Pollard Banknote Announces the Closing of the Acquisition of Schafer Systems
WINNIPEG, Oct. 31, 2018 /CNW/ - Pollard Banknote Limited (TSX: PBL) ("Pollard Banknote" or "Pollard") is pleased to announce the closing of the previously announced purchase ("Acquisition") of substantially all of the operating assets and business of Schafer Systems Inc. ("Schafer"), the leading global provider of lottery ticket dispensers and play stations.
Today's announcement follows completion of the closing conditions included in the definitive agreement dated September 25, 2018. As part of the former Employee Stock Ownership Plan ("ESOP") the employees and former employees of Schafer who remained members of the ESOP, and the ESOP Trustee, were required to approve the transaction through a formal vote, which we are happy to announce was overwhelmingly in favour of the Acquisition.
"We are very pleased to close the Acquisition and particularly gratified with the vote of confidence provided by our new colleagues at Schafer," stated Doug Pollard, Co-Chief Executive Officer of Pollard. "We look forward to providing lotteries the same great service and innovative retail products they are used to receiving from Schafer and, in combination with the resources available in Pollard, expanding Schafer's reach to new geographic and technological opportunities. The Schafer retail knowledge base will fit extremely well in the Pollard portfolio of tools available to our lottery customers and assist us greatly in maximizing growth at the retail level."
Schafer was founded in 1986 in Adair, Iowa and has built its business largely on creating innovative products including lottery ticket dispensers and point of purchase displays for the lottery industry. As the foremost supplier of lottery ticket dispensers, Schafer has partnered with all 44 existing U.S. lotteries and over 50 lotteries in other countries during its three decades in business. Based in western Iowa, Schafer employs approximately 50 full-time employees and is the recognized leader in assisting lotteries to efficiently and effectively distribute their instant-win scratch tickets to consumers.
With a focus on solutions to increase sales at the retail location for the lottery industry, and on the development of innovative and proprietary products, Schafer is a leader and key partner to the lotteries for on-counter and wall mounted modular dispensers with promoters, in-counter dispensers, ticket menu boards, check writers, literature holders, promotional products, mounting fixtures, pop-ups, stands, play stations, and game centers in a variety of sizes, configurations, and materials.
The total Acquisition purchase price was $23.5 million U.S. dollars (approximately $30.6 million CDN dollars using an exchange rate of $1.30 CDN dollar per U.S. dollar) prior to any standard working capital adjustments, with 100% all cash consideration being funded from existing Pollard Banknote cash resources and availability under our existing senior credit facility. Schafer has a long history of profitability and the Acquisition is expected to be accretive to Pollard Banknote's net income.
John Pollard, Co-Chief Executive Officer of Pollard Banknote concluded, "Our strategic vision continues to set the foundation for our business: being the partner of choice for the lottery and charitable gaming industry. The closing of the acquisition of the Schafer business is another important step in achieving that vision. Adding the industry leading solution in the retailing of instant tickets follows that vision and allows Pollard to remain the thought leader among the suppliers to lotteries around the world. We look forward to working with the great team at Schafer."
About Pollard Banknote
Pollard Banknote is a leading lottery partner to more than 60 lotteries worldwide, providing high quality instant ticket products, licensed games, and a full suite of digital offerings ranging from game apps to comprehensive player engagement and iLottery solutions, including strategic marketing and management services. The company is a proven innovator and has decades of experience helping lotteries to maximize player engagement, sales, and proceeds for good causes. Pollard Banknote also plays a major role in providing pull-tab tickets, bingo paper and its Diamond Gameand Oasis-branded electronic ticket machines to charitable and other gaming markets in North America. Established in 1907, Pollard Banknote is owned approximately 67.6% by the Pollard family and 32.4% by public shareholders, and is publicly traded on the TSX (PBL). For more information, please visit our website at www.pollardbanknote.com.
Forward-looking Statements
Certain statements in this press release may constitute "forward-looking" statements and information, which involve known and unknown risks, uncertainties, and other factors that may cause actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. When used in this document, such statements include such words as "may," "will," "expect," "believe," "plan," and other similar terminology. These statements reflect management's current expectations regarding future events and operating performance and speak only as of the date of this document. There should not be an expectation that such information will in all circumstances be updated, supplemented, or revised whether as a result of new information, changing circumstances, future events, or otherwise.
SOURCE Pollard Banknote Limited
For further information: Doug Pollard, Co-Chief Executive Officer, E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.; John Pollard, o-Chief Executive Officer, E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.; Rob Rose, Chief Financial Officer, E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it., Pollard Banknote Limited, Telephone: (204) 474-2323
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