United Stationers Completes Acquisition of Sweet Paper Companies

    DES PLAINES, Ill., May 31 /PRNewswire-FirstCall/ -- United Stationers Inc.
 (Nasdaq:   USTR) announced today that its Lagasse, Inc. subsidiary completed the
 purchase of the stock of Sweet Paper Corp. and substantially all of the assets
 of Sweet Paper Group, a privately-held wholesale distributor of
 janitorial/sanitation, paper, and foodservice products, in a cash transaction.
 The Sweet Paper companies generate combined annual sales of approximately
 $250 million and are headquartered in Hialeah, Florida.
 
     Acquisition Complements and Expands Lagasse Product Line
     "We are excited to have completed this important acquisition, which will
 enable us to expand the Lagasse product line, and enhance our scale and
 infrastructure in key markets that include the Southeast, California, Texas
 and Massachusetts," said Richard W. Gochnauer, president and chief executive
 officer of United Stationers.  "Sweet Paper brings experienced management and
 personnel, valuable relationships, and new capabilities to our already strong
 janitorial/sanitation operation."
     "We are extremely pleased to welcome the Sweet Paper associates to the
 Lagasse and United Stationers' teams," added Gochnauer.  "Together, we look
 forward to providing all of our existing and new customers with enhanced
 product and service offerings."
     "The merger of Lagasse and Sweet Paper represents an important step in our
 strategic planning process.  We believe this acquisition will be accretive to
 earnings in 2006 and will position us for continued growth and success in this
 category," concluded Gochnauer.
 
     Targeted Geographic Expansion Continues
     "The acquisition of Sweet Paper provides 10 additional distribution
 facilities to augment the 24 facilities in Lagasse's nationwide network,"
 explained Steve Schultz, president of Lagasse.  "We anticipate that our
 combined operations will allow us to become more efficient, to improve our
 service, and to expand our reach, our customer base and the channels we
 serve."
 
     Forward-Looking Statements
     This news release contains forward-looking statements, including
 references to goals, plans, strategies, objectives, anticipated future
 performance, results or events and other statements that are not strictly
 historical in nature.  These statements are based on management's current
 expectations, forecasts and assumptions.  This means they involve a number of
 risks and uncertainties that could cause actual results to differ materially
 from those expressed or implied here.  These risks and uncertainties include,
 but are not limited to the following: United's ability to integrate its
 acquisition of the Sweet Paper businesses and to realize the synergies and
 benefits anticipated from this transaction; United's ability to effectively
 manage its operations and to implement general cost-reduction and margin-
 enhancement initiatives; United's ability to successfully procure and
 implement new information technology (IT) packages and systems, integrating
 them with and/or migrating from existing IT systems and platforms without
 business disruption or other unanticipated difficulties or costs; United's
 ability to effectively integrate past and future acquisitions into its
 management, operations, financial and technology systems; United's timely and
 efficient implementation of improved internal controls in response to
 conditions previously or subsequently identified at its Canadian division or
 elsewhere, in order to maintain an effective internal control environment in
 compliance with the Sarbanes-Oxley Act of 2002; the conduct and scope of the
 SEC's informal inquiry relating to United's Canadian division or any formal
 investigation that may arise from this, and the ultimate resolution of any
 inquiry or investigation; the outcome of, and any costs associated with the
 defense of legal proceedings pending against the company; United's reliance on
 key suppliers and the impact of variability in their pricing, allowance
 programs and other terms, conditions and policies, such as those relating to
 geographic or product sourcing limitations, price protection terms and return
 rights; variability in supplier allowances and promotional incentives payable
 to the company, based on inventory purchase volumes, attainment of supplier-
 established growth hurdles, and supplier participation in the company's annual
 and quarterly catalogs and other marketing programs, and the impact of these
 supplier allowances and promotional incentives on the company's gross margins;
 United's reliance on key customers, and the business, credit and other risks
 inherent in continuing or increased customer concentration; continuing or
 increasing competitive activity and pricing pressures within existing or
 expanded product categories; increases in customers' purchases directly from
 product manufacturers; United's ability to anticipate and respond to changes
 in end-user demand and to effectively manage levels of any excess or obsolete
 inventory; the impact of variability in customer demand on United's product
 offerings and sales mix and, in turn, on customer rebates payable, and
 supplier allowances earned, by the company and on United's gross margin;
 reliance on key management personnel, both in day-to-day operations and in
 execution of new business initiatives; uncertainties related to any new
 regulations applicable to the company, including any new rulemaking by the
 SEC; acts of terrorism or war; and prevailing economic conditions and changes
 affecting the business products industry and the general economy.
 
     About Lagasse
     Lagasse, Inc. is a leading wholesale source for over 10,000 janitorial and
 sanitary maintenance products.  Through its nationwide network of 24
 distribution centers, Lagasse serves distributor customers from the janitorial
 and sanitation maintenance industry, including distributors focused on the
 paper, industrial, food service, 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.
 
     About United Stationers
     United Stationers Inc., with 2004 sales of $4.0 billion, is North
 America's largest broad line wholesale distributor of business products. Its
 integrated computer-based distribution systems make more than 40,000 items
 available to approximately 15,000 resellers.  United is able to ship products
 within 24 hours of order placement because of its 35 United Stationers Supply
 Co. distribution centers, 24 Lagasse distribution centers that serve the
 janitorial and sanitation industry, two Azerty distribution centers in Mexico
 that serve computer supply resellers, and two distribution centers that serve
 the Canadian marketplace.  Its focus on fulfillment excellence has given the
 company an average order fill rate of better than 97%, a 99.5% order accuracy
 rate, and a 99% on-time delivery rate.  For more information, visit
 http://www.unitedstationers.com .
 
     The company's common stock trades on The NASDAQ Stock Market(R) under the
 symbol USTR.
 
 

SOURCE United Stationers Inc.

More by this Source


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.