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8-K - FORM 8-K - BRIGHTPOINT INC | c61742e8vk.htm |
EX-10.1 - EX-10.1 - BRIGHTPOINT INC | c61742exv10w1.htm |
Exhibit 99.1
Brightpoint Enters into Agreement to Acquire Touchstone Wireless
| Touchstone Wireless is a leading provider of repair services and reverse logistics for the wireless industry | ||
| Accelerates Brightpoints growth in wireless handset repair and reverse logistics market | ||
| Creates the wireless industrys most efficient supply chain solutions provider |
INDIANAPOLIS December 13, 2010 Brightpoint, Inc. (Nasdaq: CELL) (Brightpoint), today
announced that through its wholly-owned indirect subsidiary, Touchstone Acquisition, LLC
(Brightpoint) it entered into an agreement to acquire Touchstone Wireless Repair and Logistics, L.P.
(Touchstone). Touchstone provides repair, remanufacture, and reverse logistics services to the
wireless industry and is a privately-held company based in Hatfield, PA. With the Touchstone
acquisition, Brightpoint further expands its solutions offering and creates the wireless industrys most efficient supply chain solutions provider.
Under the terms of the agreement, Brightpoint will pay $80 million in cash at closing to acquire
Touchstone. Brightpoint expects to fund the purchase price from its Senior Revolving Credit
Facility.
The
proposed acquisition is expected to close by December 31, 2010 and is subject to customary closing
conditions including, without limitation, the receipt of certain regulatory approvals.
For additional details in connection with the acquisition, please refer to the Current Report
on Form 8-K, which the Company will file with the Securities and Exchange Commission today.
Together, Brightpoint and Touchstone have strong relationships with all of the major wireless
handset manufacturers and wireless carriers, said Robert J. Laikin, Brightpoint Chairman of the
Board and Chief Executive Officer. The combination of our companies creates the wireless
industrys most compelling forward and reverse logistics service provider. Touchstones innovative
asset management and recycling programs are examples of the areas of expertise that we will offer
to our customers in more than 25 countries. I believe that our customers will benefit from the
efficiencies created by the addition of Touchstones leading reverse logistics and repair solutions
and that our shareholders will benefit from this transaction which we expect to be slightly
accretive to our 2011 earnings per share.
By combining Brightpoints strength in forward logistics with Touchstones expertise in the repair
and reverse logistics arena, we are creating a new class of solutions provider in the wireless
industry, said Brightpoint Americas President, J. Mark Howell. Adding a robust in-house repair
operation with more than 300 trained repair technicians, solidifies and extends Brightpoints
leadership position in the wireless supply chain solutions arena. This combination enables us to
increase our value proposition to our customer base of leading network operators, manufacturers and
retailers by offering true end-to-end supply chain services and provides the expertise and
infrastructure for additional services such as wireless device recycling and refurbishment.
We are proud of our significant accomplishments and reverse logistics innovations within the
wireless industry, said Allen Hurley, Chairman and Co-Founder, Touchstone Wireless. Weve set a
superior standard for quality, reliability and customer service for our carrier and manufacturer
partners during our decade-long history. The combination of our companies provides Touchstone with
access to greater resources, expands our business by utilizing Brightpoints extensive network of
customer and manufacturing partners, and strengthens Brightpoints product and service portfolio.
I see this combination as a tremendous opportunity for Touchstones nearly 1,800 employees.
Blank Rome LLP acted as outside counsel and Blackstone Advisory Partners L.P. acted as the
exclusive financial advisor to Brightpoint in connection with the transaction.
About Brightpoint, Inc.
Brightpoint, Inc. (Nasdaq:CELL) is a global leader in providing supply chain solutions to leading
stakeholders in the wireless industry. In 2009, Brightpoint handled approximately 84 million
wireless
devices globally. Brightpoints innovative services include distribution channel management,
procurement, inventory management, software loading, kitting and customized packaging, fulfillment,
product customization, eBusiness solutions, and other outsourced services that integrate seamlessly
with its customers. Brightpoints effective and efficient platform allows its customers to benefit
from quickly deployed, flexible, and cost effective solutions. The company has approximately 2,700
employees in more than 25 countries. In 2009, Brightpoint generated revenue of $3.2 billion.
Brightpoint provides distribution and customized services to more than 25,000 B2B customers
worldwide. Additional information about Brightpoint can be found on its website at
www.brightpoint.com, or by calling its toll-free Information and Investor Relations line at
877-IIR-CELL (877-447-2355).
About Touchstone Wireless
Touchstone Wireless LP was formed in 2005 with the merger of Image 1 Wireless Inc. of Bristol,
Tenn., and Eastern Wireless Inc., a Pennsylvania-based company. Touchstone is the leading handset
repair, remanufacturing and logistics provider in North America, known for meeting the highest
possible standards in the industry and for its extensive internal/external IT systems.
Touchstones core business is the repair, remanufacturing and logistical services of wireless products,
involving forward and reverse logistics, warranty and out-of-warranty fulfillment,
and refurbishment. The company also provides creative and cost
effective repair and reverse logistics solutions for wireless product insurance and handles asset management, which involves finding markets globally for
refurbished, salvaged and recycled wireless products on behalf of customers and then selling the products
in those markets. Touchstones innovative IT solutions enable customers to track and manage their
inventories in real time, which improves efficiency and lowers total costs. For more information,
visit www.touchstonewirelesslp.com.
Certain information in this press release may contain forward-looking statements regarding future
events or the future performance of Brightpoint, including without limitation, the ability of
Brightpoint to consummate the purchase of Touchstone, the ability to realize the anticipated
efficiencies and other benefits of the transaction, including the accretion to earnings per share
in 2011. These statements are only predictions and actual events or results may differ materially.
Please refer to the documents Brightpoint files, from time to time, with the Securities and
Exchange Commission, including Brightpoints Form 8-K filed today and the most recent Form 10-K and
Form 10-Q and Exhibit 99.1, thereto. These documents contain and identify important risk factors
that could cause the actual results to differ materially from those contained in or implied by
these forward-looking statements. Readers are cautioned not to place undue reliance on these
forward-looking statements that speak only as of the date these statements were made. Brightpoint
undertakes no obligation to update any forward-looking statements contained in this press release.
Contacts: Brightpoint, Inc. Tom Ward Investor Relations 317-707-2355 |
Brightpoint,
Inc. Carolyn Manco Media Relations 317-707-2276 |