Transaction Valued at Approximately $628 Million
DALLAS, Texas, July 9, 2007 – CompuCom Systems, Inc. (“CompuCom”) announced today that CHR Holding Corporation, an affiliate of Platinum Equity and parent company of CompuCom Systems, Inc., has entered into a definitive agreement pursuant to which IIM Acquisition Corp., an affiliate of Court Square Capital Partners (“Court Square”), would acquire CompuCom.
The transaction is valued at approximately $628 million and is expected to close in the second half of 2007, subject to regulatory approvals as well as satisfaction of other customary closing conditions. The agreement has already been approved by a majority of CHR Holding Corporation’s shareholders.
Mr. James Dixon, CEO of CompuCom stated, “We are excited about the opportunity to partner with Court Square Capital Partners, a firm with an outstanding reputation and proven track record of success. We are proud to have been associated with Platinum Equity and of our work growing our business and delivering results for our customers. We believe this transaction represents a further opportunity to build our business and expand our customer offerings in partnership with Court Square.”
The transaction will be financed through a combination of equity contributed by investment funds managed by Court Square and certain members of management, and debt financing provided by Bear, Stearns & Co. Inc.
In connection with the consummation of the merger, CompuCom intends to make a tender offer to purchase for cash any and all of its outstanding 12% Senior Notes due 2014, and CHR Intermediate Holding Corporation, another subsidiary of CHR Holding Corporation, intends to make a tender offer to purchase for cash any and all of its outstanding Senior Floating Rate Toggle Notes due 2013. Any such offer will be made only upon an official announcement, and the terms and conditions of the offer will be set forth in an offer to purchase and consent solicitation statement that will be made available to holders of such Notes upon launch of the offers. This press release does not constitute an offer to purchase any securities. Certain statements in this paragraph may contain forward-looking statements concerning the transaction described herein. These statements are based on current expectations and there can be no assurance that such expectations will prove to be correct.
CompuCom was acquired by Platinum Equity in October 2004, and expanded with the add-on acquisition and integration of GE IT Solutions in November 2004. The company provides a broad range of information technology solutions that help clients through the requisition, procurement, deployment, management and retirement lifecycle of their IT assets.
Bear Stearns & Co., Inc. acted as financial advisor and Dechert LLP is acting as legal advisor to Court Square. Bingham McCutchen is acting as legal advisor to CompuCom and Platinum Equity.
About CompuCom Systems, Inc.
CompuCom is a leading IT outsourcing company providing infrastructure management services, application services, systems integration and consulting services, as well as the procurement and management of hardware and software. With 20 years of IT experience, CompuCom employs more than 7,400 highly skilled associates who have earned a combined total of more than 42,000 industry certifications company-wide. As experts in workplace services, CompuCom’s unique Integrated Infrastructure Management (IIM) solution reduces costs, increases productivity and helps clients gain maximum value from information. CompuCom is a Platinum Equity company and was founded in 1987. For more information, visit www.CompuCom.com.
About Court Square
Court Square Capital Partners is a thirty year old private equity firm focused primarily on leveraged buyout transactions in the middle market. Led by Managing Partners David Thomas, Michael Delaney and Joseph Silvestri, the investment team is one of the most experienced in the industry having worked together as a team for over 20 years. Court Square has successfully invested about $4.0 billion in over 120 transactions since 1990 and currently has over $5.7 billion under management.
About Platinum Equity
Platinum Equity (www.platinumequity.com) is a global M&A&O® firm specializing in the merger, acquisition and operation of companies that provide services and solutions to customers in a broad range of business markets, including information technology, telecommunications, logistics, manufacturing, and entertainment distribution. Since its founding in 1995 by Tom Gores, Platinum Equity has completed more than 70 acquisitions with more than $16 billion in aggregate annual revenue at the time of acquisition.
CompuCom Systems, Inc.
Court Square Capital Partners