Brampton and Toronto, Ontario – May 3, 2019 – DATA Communications Management Corp. (TSX: DCM) (“DCM” or the “Company”) and Southwest Business Products Ltd. (“Southwest”) announce they have entered into a purchase and sale agreement, whereby DCM has sold its loose-leaf binders and index tab business to Southwest. In addition, DCM has entered into a long- term supply agreement with Southwest as a preferred vendor to DCM for the supply of binders, index tabs and related products.
The loose-leaf binders and tab business was previously acquired by DCM in conjunction with the acquisition of BOLDER Graphics in November 2017, and consists of the manufacturing and selling of: binders, including stock and custom loose-leaf binders; tabs, including stock and custom number and letter tabs; and related binder and tab products. The large-format digital printing and point of sale signage and packaging business acquired in the BOLDER transaction is not included in this transaction.
“Southwest is the leading manufacturer of document binding supplies in Canada, and we’ve had a long-standing trusted partner relationship them,” said Gregory J. Cochrane, CEO of DCM. “This transaction is consistent with our strategic focus on products and solutions that are core to our top customers, and to source non-core offerings from other leading providers where it makes more strategic sense.”
“We are excited to build upon our strong relationship with DCM,” said Louis Cordeiro, President of Southwest. “We pride ourselves on providing our customers the best solutions, largest selection, and highest level of customer satisfaction and this acquisition further enhances our offering.”
Terms of the transaction were not disclosed.
ABOUT DATA COMMUNICATIONS MANAGEMENT CORP.
DCM is a communication solutions partner that adds value for major companies across North America by creating more meaningful connections with their customers. DCM pairs customer insights and thought leadership with cutting edge products, modular enabling technology and services to power its clients’ go to market strategies. DCM helps its clients manage how their brands come to life, determine which channels are right for them, manage multimedia campaigns, deploy location specific and 1:1 marketing, execute custom loyalty programs, and fulfill their commercial printing needs all in one place.
DCM’s extensive experience has positioned it as an expert at providing communication solutions across many verticals, including the financial, retail, healthcare, consumer health, energy, and not for profit sectors. As a result of its locations throughout Canada and in the United States (Chicago, Illinois), it is able to meet its clients’ varying needs with scale, speed, and efficiency – no matter how large or complex the ask. DCM is able to deliver advanced data security, regulatory compliance, and bilingual communications, both in print and/or digital formats.
Additional information relating to DATA Communications Management Corp. is available on www.datacm.com, and in the disclosure documents filed by DATA Communications Management Corp. on the System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com.
Forward-Looking Statements
Certain statements in this press release constitute “forward looking” statements that involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance, objectives or achievements of DCM or industry results, to be materially different from any future results, performance, objectives or achievements expressed or implied by such forward looking statements. When used in this press release, words such as “may”, “would”, “could”, “will”, “expect”, “anticipate”, “estimate”, “believe”, “intend”, “plan”, and other similar expressions are intended to identify forward looking statements. These statements reflect DCM’s current views regarding future events and operating performance, are based on information currently available to DCM, and speak only as of the date of this press release. These forward looking statements involve a number of risks, uncertainties and assumptions and should not be read as guarantees that future performance or results will be achieved. Many factors could cause the actual results, performance, objectives or achievements of DCM to be materially different from any future results, performance, objectives or achievements that may be expressed or implied by such forward looking statements, including the changes in the Company’s senior management and other factors discussed elsewhere in this press release and under the headings “Liquidity and capital resources” and “Risks and Uncertainties” in DCM’s management’s discussion and analysis and other publicly available disclosure documents, as filed by DCM on SEDAR (www.sedar.com).
Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward looking statements prove incorrect, actual results may vary materially from those described in this press release as intended, planned, anticipated, believed, estimated or expected. Unless required by applicable securities law, DCM does not intend and does not assume any obligation to update these forward looking statements.
For further information, contact:
Mr. Gregory J. Cochrane
Chief Executive Officer
DATA Communications Management Corp.
Tel: (905) 791-3151
Mr. James E. Lorimer
Chief Financial Officer
DATA Communications Management Corp.
Tel: (905) 791-3151