Exhibit 99.1
Kathleen S. Dvorak
Sr. Vice President, Investor Relations and
Financial Administration
or
Eileen A. Kamerick
Executive Vice President and Chief Financial Officer
United Stationers Inc.
(847) 699-5000
FOR IMMEDIATE RELEASE
LAGASSE BROS. INC. SIGNS A DEFINITIVE AGREEMENT FOR ACQUISITION
TO EXPAND ITS PRESENCE IN THE JANITORIAL AND SANITATION MARKET
Des Plaines, Ill., Dec. 20, 2000 -- United Stationers (NASDAQ: USTR)
announced today that its Lagasse Bros. subsidiary signed a definitive
purchase agreement with Peerless Paper Mills, Inc. of Oaks, Pennsylvania.
Peerless, with annual sales of approximately $75 million, currently offers
janitorial/sanitation, paper, and food service products to more than 2,000
distributor customers in eighteen states across the Northeast and Midwest.
The transaction is expected to close early next month subject to the
satisfaction of various conditions, including the completion of due diligence.
OPPORTUNITY TO EXPAND MARKET AND GROW JANITORIAL/SANITATION BUSINESS
"Our janitorial/sanitation subsidiary, Lagasse Bros., has been a very
profitable segment of our business since we acquired it in 1996 and is our
fastest growing product category," said Randall W. Larrimore, president and
chief executive officer of United Stationers. "The acquisition of Peerless
will allow Lagasse to further build this business by increasing scale and
coverage in the Northeast and the Midwest. With Peerless' added distribution
capacity, logistics capabilities, sales coverage and marketing skills, as
well as a variety of incremental product offerings, we expect to quickly
expand our market presence. We gain additional facilities in several new
markets and nearly 400,000 sq. ft. of distribution capacity. Peerless'
brand new, state-of-the-art, 200,000 sq. ft. facility outside Philadelphia
affords strong operating efficiencies."
"This is a good strategic and cultural fit for us - Peerless is a
profitable and well-respected company," continued Larrimore. "They have
product lines that complement and expand those of Lagasse Bros., particularly
in the areas of paper and food service products; products that can be
effectively distributed throughout existing Lagasse markets. We also
anticipate that as a result of this acquisition and the additional
distribution scale it affords, we should realize some opportunities for
additional third-party fulfillment business. We expect that this transaction
will be accretive to earnings in 2001."
Tim Feeheley, president of Lagasse Bros. added, "We are very excited
that Peerless is joining us. They have an excellent track record and operate
a profitable business that has experienced high teen annual sales growth for
each of the last two years. They have experienced management at all levels of
their organization and bring significant opportunities for expanded product
and service offerings, increased customer and channel penetration, and
improved cost leveraging. This acquisition helps to both broaden and deepen
our customer base while enhancing our operating capabilities. All of these
factors should provide us with a better combined platform for future growth
and solid profitability."
Bill Sheppard, president of Peerless Paper Mills comments, "Peerless and
Lagasse share a common business vision to create value for our customers and
suppliers in the distribution chain. Both companies have excellent,
long-standing reputations for professionalism, uncompromising business
ethics, and high quality products and service, making the transaction a very
good cultural fit for associates of Peerless."
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United Stationers Signs A Definitive Agreement
To Acquire Peerless Paper Mills, Inc. To Expand
Its Presence In The Janitorial/Sanitation Market
Page 2
ABOUT UNITED STATIONERS
United Stationers Inc., with trailing 12-month sales of $3.8 billion, is
North America's largest distributor of business products to resellers. Its
integrated computer-based distribution system makes more than 35,000 items
available to 20,000 resellers. United is able to ship products within 24
hours of order placement because of its 39 United Stationers Supply Co.
regional distribution centers, 22 Lagasse distribution centers that serve the
janitorial and sanitation industry, six Azerty distribution centers that
serve computer supply resellers, three distribution centers that serve the
Canadian marketplace and a dedicated distribution center that will service
clients of THE ORDER PEOPLE. Its focus on fulfillment excellence has given
the company a 98+ percent order fill rate, a 99.5 percent order accuracy
rate, and a 99 percent on-time delivery rate. For more information, visit
www.unitedstationers.com.
ABOUT LAGASSE BROS. INC.
Lagasse Bros. Inc. is the nation's leading wholesale source for over
7,000 janitorial and sanitary maintenance products. Through its nationwide
network of 22 distribution centers, Lagasse serves distributor customers from
the janitorial and sanitation maintenance industry, including distributors
focused on the paper, industrial, foodservice, safety, material handling and
healthcare channels. Lagasse is recognized in the marketplace as a
distribution partner, providing integrated fulfillment, sales support and
value-added marketing solutions to its customers.
FORWARD-LOOKING STATEMENTS
WITH THE EXCEPTION OF STATEMENTS ON HISTORICAL EVENTS, THE INFORMATION
PRESENTED IN THIS NEWS RELEASE CONTAINS FORWARD-LOOKING STATEMENTS WITHIN THE
MEANING OF SECTION 21E OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.
THESE STATEMENTS INVOLVE RISKS AND UNCERTAINTIES THAT COULD CAUSE ACTUAL
RESULTS TO DIFFER MATERIALLY FROM THE INFORMATION PRESENTED HERE. THESE
RISKS AND UNCERTAINTIES AFFECTING THIS RELEASE INCLUDE, BUT ARE NOT LIMITED
TO THE COMPLETION OF THE PROPOSED PEERLESS PAPER MILLS, INC. ACQUISITION, THE
INTEGRATION OF ACQUISITIONS, CHANGES IN END-USERS' DEMANDS FOR BUSINESS AND
JANITORIAL/SANITATION PRODUCTS, CUSTOMER CREDIT RISK, THE COMPANY'S RELIANCE
ON CERTAIN KEY SUPPLIERS, THE EFFECTS OF FLUCTUATIONS IN MANUFACTURERS'
PRICING AND GENERAL ECONOMIC CONDITIONS, AND THE HIGHLY COMPETITIVE
ENVIRONMENT IN WHICH THE COMPANY OPERATES. A DESCRIPTION OF THESE AND OTHER
FACTORS THAT COULD AFFECT THE COMPANY'S BUSINESS ARE SET FORTH IN FILINGS
WITH THE SECURITIES AND EXCHANGE COMMISSION INCLUDING THE COMPANY'S LATEST
10-K AND 10-Q.
The company's common stock is included in the S&P SmallCap 600 Index.
It trades on the Nasdaq National Market tier of the Nasdaq Stock Market under
the symbol: USTR.
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