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[DAISYTEK INTERNATIONAL LOGO]
For Immediate Release
CONTACTS: JIM POWELL CRAIG MCDANIEL, APR
President and CEO Michael A. Burns & Associates
Daisytek International (214) 521-8596 or (214) 616-7186 mobile
(972) 881-4700 [email protected]
[email protected]
DAISYTEK INTERNATIONAL EXPANDS TO ARGENTINA
Company acquires major wholesale distributor of IT supplies
ALLEN, TEXAS (JAN. 9, 2001) - Daisytek International Corporation (Nasdaq: DZTK),
a $1.2 billion leader in the wholesale distribution of computer and office
supplies, acquired the capital stock of Etertin y CIA, S.A. in Buenos Aires,
closing the deal Dec. 22, 2000, with an effective date of Oct. 1, 2000.
"This transaction is consistent with our strategy to expand into
high-growth markets via the acquisition of major players in those markets. We
will continue to pursue strategic opportunities such as Etertin as we extend our
international in-country presence," said Jim Powell, Daisytek's president and
CEO. "We expect this acquisition to be at least 2 cents EPS accretive in fiscal
year 2002."
Etertin is one of Argentina's largest distributors of computer supplies
and accessories from leading manufacturers including Hewlett-Packard, Canon,
Epson, Nashua and Xerox.
"Etertin is an excellent company and great fit for Daisytek. It has
been doing business in the growing Argentinean market for more than 25 years and
has an excellent management team that will continue to help build the business
throughout Argentina," said Peter D. Wharf, executive vice president of
worldwide supplies. "Etertin's revenues will be entirely additive, because they
have not been a customer of Daisytek's Miami branch."
International markets represent more than 25 percent of Daisytek's
overall sales of about $1.2 billion. The company's international strategy began
with its expansion into Canada in 1989. Since then, Daisytek has opened
operations in Mexico, Australia and Miami (to serve Latin America). Daisytek's
international operations had growth for the fourth quarter of fiscal 2000 more
than 25 percent compared to the same period last year.
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ABOUT DAISYTEK
Daisytek is a leading distributor of computer supplies, office products, and
tape and film media. Serving customers in more than 50 countries, Daisytek
distributes almost 20,000 products from more than 150 manufacturers. Daisytek is
headquartered in Allen, Texas, and maintains sales and distribution centers in
the United States, Australia, Canada and Mexico. Daisytek is a registered
trademark of Daisytek, Incorporated. All rights reserved. This news release and
more information about Daisytek are available at www.daisytek.com.
The matters discussed in this news release contain both historical and
forward-looking statements. All statements other than statements of historical
fact are, or may be deemed to be, forward-looking information within the meaning
of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Act of 1934, as amended. You can identify these statements by the
fact that they do not relate strictly to historical or current facts, but rather
reflect our current expectations concerning future results and events.
Forward-looking statements relating to such matters as our financial condition
and operations are based on our management's current intent, belief or
expectations regarding our industry or us. These forward-looking statements are
not guarantees of future performance and involve risks, uncertainties and
assumptions that are difficult to predict. In addition, some forward-looking
statements are based upon assumptions as to future events that may not prove to
be accurate. Therefore, actual outcomes and results may differ materially from
what is expected or forecasted in such forward-looking statements. We undertake
no obligation to update publicly any forward-looking statement for any reason,
even if new information becomes available or other events occur in the future.
Certain factors, including but not limited to, general economic conditions,
industry trends, the loss of key suppliers or customers, the loss of strategic
product shipping relationships, customer demand, product availability,
competition (including pricing and availability), risks inherent in acquiring,
integrating and operating new businesses, concentrations of credit risk,
distribution efficiencies, capacity constraints, technological difficulties,
exchange rate fluctuations, and the regulatory and trade environment (both
domestic and foreign) could cause our actual results to differ materially from
the anticipated results or other expectations expressed in our forward looking
statements. There may be additional risks that we do not currently view as
material or that are not presently known.
A description of these factors, as well as other factors which could affect the
Daisytek business, is set forth in Daisytek's 10-K for the fiscal year ended
March 31, 2000.
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