Business News
American TonerServ Enters Into Sales Partner Agreement With Mid-America Environmental
Tuesday 14. April 2009 - American TonerServ Corp. (OTCBB: ASVP) ("ATS"), a strategic consolidator in the more than $6.0 billion highly fragmented independent segment of the printer supplies and services industry, announced today it has entered into a sales partner agreement and obtained an option to acquire certain assets and assume certain liabilities of Mid-America Environmental, LLC, doing business as Alpha Laser Services and Alpha Imaging Solutions of Evansville, Indiana. T
he companies provide printer and copier supplies, equipment and service to the greater Evansville area.
The sales partner agreement is for a term of five years. The option agreement provides ATS with the option to acquire certain assets and assume certain liabilities during that same time period. The purchase price, to be paid upon exercise of the option, would be determined based on a due diligence review of Mid-America’s financial statements and other factors, and would include a combination of notes and stock. According to unaudited financial information provided to ATS by Mid-America, the business generated approximately $1.4 million in revenue in 2008. ATS paid Mid-America $450,000 for the option in the form of two promissory notes payable over five years.
“The completion of the Mid-America sales partner agreement expands our geographic penetration and provides us with another solid footprint in a prime area of the country,” said Chuck Mache, president and chief executive officer of American TonerServ. “Mid-America is an ideal partner because of their talented team, deep roots in their market, and expertise in both the printer and copier industries. Our agreement represents another step in our growth strategy and is in keeping with our ultimate objective of enhancing shareholder value.”
“We are thrilled to enter this agreement with American TonerServ and mutually benefit from our respective strengths,” said Scott Althaus, who founded Mid-America with his two sons, Jason and Aaron, and has been serving its customers’ office supply, printer service and equipment needs since 1999.
Althaus added, “The operational infrastructure America TonerServ brings to Mid-America will help propel our long-term goals, as well as enable us to benefit from being associated with a public entity and a strong management team.”
Under the terms of the sales partner agreement, American TonerServ will provide Mid-America with administrative and logistical support, allowing Mid-America to focus primarily on building local customer relationships, while offering the benefits of a nationwide cartridge and printer service provider, including volume purchasing power, operational expertise and related efficiencies.