EXHIBIT 99
U.S. Investor/
Media Contact: Jeff Reinhold
Chief Financial Officer
Checkpoint Systems, Inc.
(856) 848-1800
(212) 850-5600
Website:
Morgen-Walke Associates, Inc.:
Donna Stein/Cindy Reid (Investors)
Jennifer Gery (Media)
(212) 850-5600
European Investor/Media
Contact: William Reilly
Executive Vice President
Checkpoint Systems, Inc.
46 8-55-60-2100
Morgen-Walke Europe S.A.: Brian Maddox
(August 11-12,1999) 46 8-55-60-2100
33-1-47-03-68-10
001-917-349-0571
FOR IMMEDIATE RELEASE
CHECKPOINT SYSTEMS TO LAUNCH TENDER OFFER FOR METO AG
- Creates Global Automatic Identification and Retail Supply Chain Management
Provider
- Annual Revenues of Combined Company to Exceed $750 million (C698 million);
Over 40% Representing Recurring Revenues
- Achieves No. 1 Position in EAS Source Tagging Worldwide
- Accretive to Earnings in Fiscal Year 2000
Thorofare, N.J., August 11, 1999 - Checkpoint Systems, Inc. (NYSE: CKP),
announced that it is launching a cash tender offer to acquire all of the
outstanding shares of Meto AG, a worldwide provider of value-added labeling
solutions. Headquartered in Heppenheim, Germany, Meto's stock is traded on the
Stockholm Stock Exchange, following its spin-off from Sweden's Esselte in June,
1999.
The transaction is valued at approximately $300 million (C279 million), which
includes the assumption of all $35 million (C32.6 million) of Meto's net debt.
The purchase price of SEK65 (C7.36) per Meto share equates to a 46% premium
over the price on the date of its spin-off of SEK 44.5 (C5.04). Checkpoint
will utilize cash reserves and proceeds from credit facilities to be provided
by First Union Capital Markets to complete the transaction.
2
Mr. Kevin P. Dowd, President and Chief Executive Officer of Checkpoint Systems,
commented, "The acquisition of Meto AG positions Checkpoint advantageously as a
global retail supply chain management provider, while giving us a platform to
take advantage of the dynamic automatic identification market, which industry
analysts project at $8 - $10 billion annually. Meto enjoys an excellent
reputation in its four key product areas: barcode-labeling systems, electronic
article surveillance, hand-held labeling systems and retail merchandising
systems. Its areas of expertise and market penetration complement Checkpoint's
strengths in the areas of Electronic Article Surveillance (EAS) systems, source
tagging and RFID."
With annual revenues in excess of $750 million (C698 million), the combined
company will utilize its North American and European distribution networks to
increase the global reach of its respective products and services.
As a result of the acquisition, Checkpoint will increase its EAS worldwide
market share to 33% and its European share to 43%, holding market leader
positions in key European markets including: Germany, United Kingdom and
Holland. The Americas will account for approximately 40% of the combined
companies' annual revenues, with Europe representing 53%, and Asia/Pacific
7%. In the source tagging area, Checkpoint will be the clear leader with
annual volume of over 800 million source tagged units. By offering both RF
and EM technologies, the Company enhances its ability to serve a larger
customer base in both the U.S. and in Europe.
In addition to being strategically important to Checkpoint, the acquisition
will be accretive to the combined companies' earnings beginning in the year
2000. Beyond the benefits associated with achieving critical mass, the
combined company expects to achieve significant efficiencies and higher
utilization rates through the rationalization of its worldwide manufacturing
operations. Checkpoint will incur cash expenses of approximately $25 million
- - $30 million, for acquisition and integration-related costs.
Mr. Dowd continued, "In the first year of operation, we estimate that
recurring revenues will represent approximately 40% of total revenues.
Cross-selling opportunities are significant from both product line and
geographic standpoints. Additionally, we believe there are significant
synergies and efficiencies to be realized as we partner with Meto to integrate
the acquisition."
"Longer term," Mr. Dowd noted, "We expect to use Meto's know-how and position in
key segments of the automatic identification market to jump-start Checkpoint's
entry into this exciting field."
The tender offer has been approved by Checkpoint's Board of Directors and will
commence on or about August 30, 1999. The completion of the offer is
conditioned upon the tender of 95% of Meto's outstanding shares, and the
acquisition is subject to both U.S. and European regulatory approvals. The
Blackstone Group and Enskilda Securities are the financial advisors to
Checkpoint on this offer.
3
Meto AG is a $375 million (C349.2 million) multinational company that
manufactures and markets labeling systems designed to improve efficiency,
reduce costs and provide value-added label solutions for customers across
many markets and industries. Applications include automatic identification,
retail security, pricing and promotional labels. Operating in 21 countries,
Meto has a global network of subsidiaries and provides professional customer
service and technical support around the world.
Checkpoint Systems, Inc., is a leading provider of integrated security
solutions for retailers worldwide, and is a leading provider of RF source
tagging, which allows its paper-thin RF tags to be embedded into product
packaging. More than 350,000 Checkpoint RF EAS systems are installed
worldwide.
Safe Harbor Statement for Checkpoint Systems, Inc.
This presentation may include information that could constitute forward-
looking statements made within the meaning of the safe harbor provisions of
the Private Securities Litigation Reform Act of 1995. Any such forward-
looking statements may involve risk and uncertainties that could cause
actual results to differ materially from any future results encompassed
within the forward-looking statements. Factors that could cause or
contribute to such differences include those matters disclosed in the
Company's Security and Exchange Commission filings.
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