EX-99.1
2
kl01029_ex99-1.htm
EXHIBIT 99.1 PRESS RELEASE
kl01029_ex99-1.htm
Exhibit
99.1
CONTACTS
:
General
Media:
Financial Media and Investors:
Matt
Levinson/Jeff
Bray
Donna Gehnrich
O'Connell
& Goldberg,
Inc. Systemax
Inc.
450
North
Park Road, Suite
600
11 Harbor Park Drive
Hollywood,
Florida
33021
Port Washington, NY 11050
(954)
964-9098
(516) 608-7020
mlevinson@oandgpr.com
/ cell: (954)
593-7208
dgehnrich@systemax.com
jbray@oandgpr.com
/ cell: (954) 599-7613
SYSTEMAX
ANNOUNCES
DEFINITIVE AGREEMENT TO ACQUIRE
SELECTED
ASSETS AND RETAIL
STORES FROM COMPUSA
Acquisition
to Continue
Great CompUSA Brand
PORT
WASHINGTON, N.Y.
-
(January 6, 2008) - Systemax Inc. (NYSE:
SYX - News
)
today
announced it has entered into a definitive agreement to acquire selected assets
and retail stores of CompUSA Inc. Completion of the transaction
is subject to customary closing conditions and is expected to close at several
dates throughout the first quarter of 2008.
Under
the
agreement, Systemax will purchase the CompUSA brand, trademarks and e-commerce
business, and as many as 16 CompUSA retail outlets.
"We
believe the value of the CompUSA brand remains very high. The company
has a long legacy of value pricing, service and customer loyalty among consumers
nationwide", said Richard Leeds, Chief Executive Officer of
Systemax. "We view this acquisition as a strong complementary
business to our TigerDirect operation".
According
to TigerDirect Chief Executive Officer Gilbert Fiorentino, CompUSA.com's
customer base enhances that of TigerDirect.com and the CompUSA retail stores
will strengthen the company's planned retail expansion. TigerDirect
currently operates 11 retail stores in Florida, Illinois, North Carolina and
Ontario, Canada. Pending required approvals, up to 16 CompUSA stores
in Florida, Texas and Puerto Rico will be added during the first quarter of
2008.
"Millions
of loyal customers will come to the Systemax and TigerDirect family of
businesses through this acquisition", Fiorentino said. "We anticipate
hiring many experienced CompUSA employees, preserving hundreds of store
management and sales positions and making us stronger and better in the
process."
As
the
select CompUSA retail stores are acquired, they will be integrated into
TigerDirect's existing retail operating environment.
"We
have
a terrific opportunity to continue the great CompUSA brand and establish a
new
heritage that will extend for generations to come", Fiorentino added.
TigerDirect,
a subsidiary of Systemax, is one of the industry's top computer and
computer-product retailers. The company's web site (
www.tigerdirect.com
)
was ranked as one of the Top 15 online retail sites for "Customer Focused
Excellence" by the Forrester Group in November 2007 and is consistently in the
Top 10 for web traffic among computer shopping sites as measured by
HitWise.
Until
the
agreement is closed, CompUSA's web site (
www.compusa.com
)
and retail operations will continue to operate under CompUSA's existing
leadership. Once the acquisition is completed, the new, improved
CompUSA.com web site will operate within Systemax's family of ecommerce web
sites. The new CompUSA.com will feature advanced searching and enhanced
content including photo galleries and videos on thousands of the most popular
PC, TV and consumer electronics items. The direct costs of the
acquisition will depend on the specific retail store locations that are
ultimately taken over and are expected to approximate $30 million. The
indirect costs of the acquisition - primarily integration and recruiting costs,
legal fees, inventory purchases, and other expenses - will be incremental to the
direct costs.
About
TigerDirect
TigerDirect
serves the needs of personal and business computer users, selling consumer
electronics, computers, digital media technology and peripherals via retail
stores, catalog and Internet channels. TigerDirect is a subsidiary of
Systemax Inc. (NYSE:SYX). Visit
www.systemax.com
for more information.
About
Systemax Inc.
Systemax
Inc. (
www.systemax.com
),
a Fortune 1000 company, sells personal computers, computer supplies, consumer
electronics and industrial products through a system of branded e-commerce
web
sites, direct mail catalogs, relationship marketers and retail stores in North
America and Europe. It also manufacturers and sells personal
computers under the Systemax and Ultra brands and develops and markets
ProfitCenter Software, a web-based, on-demand application for multi-channel
direct marketing companies.
Forward-Looking
Statements
This
press release contains forward-looking statements about the Company's
performance. These statements are based on management's estimates,
assumptions and projections and are not guarantees of future
performance. The Company assumes no obligation to update these
statements. Actual results may differ materially from results
expressed or implied in these statements as the result of risks, uncertainties
and other factors including, but not limited to: (a) unanticipated variations
in
sales volume, (b) economic conditions and exchange rates, (c) actions by
competitors, (d) the continuation of key vendor relationships, (e) the ability
to maintain satisfactory loan agreements with lenders, (f) risks associated
with
the delivery of merchandise to customers utilizing common carriers, (g) the
operation of the Company's management information systems, and (h) unanticipated
legal and administrative proceedings. Please refer to "Risk Factors"
and the Forward-Looking Statements sections contained in the Company's Form 10-K
for a more detailed explanation of the inherent limitations in such
forward-looking statements.
-
End -

EX - 99 . 1 2 kl01029 _ ex99 - 1 . htm EXHIBIT 99 . 1 PRESS RELEASE kl01029 _ ex99 - 1 . htm Exhibit 99 . 1 CONTACTS : General Media : Financial Media and Investors : Matt Levinson / Jeff Bray Donna Gehnrich O ' Connell & Goldberg , Inc . Systemax Inc . 450 North Park Road , Suite 600 11 Harbor Park Drive Hollywood , Florida 33021 Port Washington , NY 11050 ( 954 ) 964 - 9098 ( 516 ) 608 - 7020 mlevinson@oandgpr.com / cell : ( 954 ) 593 - 7208 dgehnrich@systemax.com jbray@oandgpr.com / cell : ( 954 ) 599 - 7613 SYSTEMAX ANNOUNCES DEFINITIVE AGREEMENT TO ACQUIRE SELECTED ASSETS AND RETAIL STORES FROM COMPUSA Acquisition to Continue Great CompUSA Brand PORT WASHINGTON , N . Y . - ( January 6 , 2008 ) - Systemax Inc . ( NYSE : SYX - News ) today announced it has entered into a definitive agreement to acquire selected assets and retail stores of CompUSA Inc . Completion of the transaction is subject to customary closing conditions and is expected to close at several dates throughout the first quarter of 2008 . Under the agreement , Systemax will purchase the CompUSA brand , trademarks and e - commerce business , and as many as 16 CompUSA retail outlets . " We believe the value of the CompUSA brand remains very high . The company has a long legacy of value pricing , service and customer loyalty among consumers nationwide " , said Richard Leeds , Chief Executive Officer of Systemax . " We view this acquisition as a strong complementary business to our TigerDirect operation " . According to TigerDirect Chief Executive Officer Gilbert Fiorentino , CompUSA.com 's customer base enhances that of TigerDirect.com and the CompUSA retail stores will strengthen the company ' s planned retail expansion . TigerDirect currently operates 11 retail stores in Florida , Illinois , North Carolina and Ontario , Canada . Pending required approvals , up to 16 CompUSA stores in Florida , Texas and Puerto Rico will be added during the first quarter of 2008 . " Millions of loyal customers will come to the Systemax and TigerDirect family of businesses through this acquisition " , Fiorentino said . " We anticipate hiring many experienced CompUSA employees , preserving hundreds of store management and sales positions and making us stronger and better in the process . " As the select CompUSA retail stores are acquired , they will be integrated into TigerDirect 's existing retail operating environment . " We have a terrific opportunity to continue the great CompUSA brand and establish a new heritage that will extend for generations to come " , Fiorentino added . TigerDirect , a subsidiary of Systemax , is one of the industry 's top computer and computer - product retailers . The company 's web site ( www.tigerdirect.com ) was ranked as one of the Top 15 online retail sites for " Customer Focused Excellence " by the Forrester Group in November 2007 and is consistently in the Top 10 for web traffic among computer shopping sites as measured by HitWise . Until the agreement is closed , CompUSA 's web site ( www.compusa.com ) and retail operations will continue to operate under CompUSA 's existing leadership . Once the acquisition is completed , the new , improved CompUSA.com web site will operate within Systemax 's family of ecommerce web sites . The new CompUSA.com will feature advanced searching and enhanced content including photo galleries and videos on thousands of the most popular PC , TV and consumer electronics items . The direct costs of the acquisition will depend on the specific retail store locations that are ultimately taken over and are expected to approximate $ 30 million . The indirect costs of the acquisition - primarily integration and recruiting costs , legal fees , inventory purchases , and other expenses - will be incremental to the direct costs . About TigerDirect TigerDirect serves the needs of personal and business computer users , selling consumer electronics , computers , digital media technology and peripherals via retail stores , catalog and Internet channels . TigerDirect is a subsidiary of Systemax Inc . ( NYSE : SYX ) . Visit www.systemax.com for more information . About Systemax Inc . Systemax Inc . ( www.systemax.com ) , a Fortune 1000 company , sells personal computers , computer supplies , consumer electronics and industrial products through a system of branded e - commerce web sites , direct mail catalogs , relationship marketers and retail stores in North America and Europe . It also manufacturers and sells personal computers under the Systemax and Ultra brands and develops and markets ProfitCenter Software , a web - based , on - demand application for multi - channel direct marketing companies . Forward - Looking Statements This press release contains forward - looking statements about the Company 's performance . These statements are based on management 's estimates , assumptions and projections and are not guarantees of future performance . The Company assumes no obligation to update these statements . Actual results may differ materially from results expressed or implied in these statements as the result of risks , uncertainties and other factors including , but not limited to : ( a ) unanticipated variations in sales volume , ( b ) economic conditions and exchange rates , ( c ) actions by competitors , ( d ) the continuation of key vendor relationships , ( e ) the ability to maintain satisfactory loan agreements with lenders , ( f ) risks associated with the delivery of merchandise to customers utilizing common carriers , ( g ) the operation of the Company 's management information systems , and ( h ) unanticipated legal and administrative proceedings . Please refer to " Risk Factors " and the Forward - Looking Statements sections contained in the Company 's Form 10 - K for a more detailed explanation of the inherent limitations in such forward - looking statements . - End -
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