|Acco Brands Corporation to Consolidate European Distribution Centers|
Action Completes Plans to Achieve $40 Million in Synergies from Merger of ACCO and GBC Office Products Business
LINCOLNSHIRE, ILLINOIS, September 28, 2006 – ACCO Brands Corporation (NYSE:ABD), a world leader in select categories of branded office products, announced today that it will consolidate its European logistics and distribution facilities into a state-of-the-art logistics center in Born, Netherlands. This consolidation, along with previously disclosed actions and planned facilities closures and downsizings, will account for 100% of the company's targeted $40 million net cost synergies resulting from the merger of the former ACCO World and General Binding Corporation (“GBC”).
“Born is ideally located to serve our customers in north, central and Western Europe,” said David D. Campbell, chairman and chief executive officer, ACCO Brands Corporation. “With this consolidation and our planned improvements in information technology systems, we will be uniquely positioned to provide unrivalled customer service within the European office products industry.
“We have now announced all of the facility closures or consolidations related to the integration of our office products businesses and are well underway to realizing our targeted $40 million in net cost synergies by the end of 2008,” he added.
The expansion of the Born facility, which will occupy almost 200,000 square feet (18,000 square meters), will result in the closure of distribution centers in Dijon, France; Rudersburg, Germany; and Helsingborg, Sweden in 2007. In addition, a number of finance, information technology, technical services and supply planning operations in mainland Europe – principally France and Germany – will be relocated to the Born site.
The company also announced that sales and customer service operations in France will be consolidated in a new office near Paris, resulting in the closure of three existing sales and customer service facilities in that country.
Since February of 2006, the company has announced the closure or consolidation of 28 facilities in North America and Europe, as well as the expansion of ACCO Brands' strategically located Booneville, Mississippi manufacturing and distribution center. Sales forces for the Office Products Group in both North America and Europe have been consolidated. In addition, the company has successfully integrated key information technology systems in the United States, Canada, and Mexico, with no adverse impact on customer service.
These forward-looking statements are subject to certain risks and uncertainties, are made as of the date hereof and the company assumes no obligation to update them. ACCO Brands' ability to predict results or the actual effect of future plans or strategies is inherently uncertain and actual results may differ from those predicted depending on a variety of factors, including but not limited to fluctuations in cost and availability of raw materials; competition within the markets in which the company operates; the effects of both general and extraordinary economic, political and social conditions; the dependence of the company on certain suppliers of manufactured products; the effect of consolidation in the office products industry; the risk that businesses that have been combined into the company as a result of the merger with General Binding Corporation will not be integrated successfully; the risk that targeted cost savings and synergies from the aforesaid merger and other previous business combinations may not be fully realized or take longer to realize than expected; disruption from business combinations making it more difficult to maintain relationships with the company's customers, employees or suppliers; foreign exchange rate fluctuations; the development, introduction and acceptance of new products; the degree to which higher raw material costs, and freight and distribution costs, can be passed on to customers through selling price increases and the effect on sales volumes as a result thereof; increases in health care, pension and other employee welfare costs; as well as other risks and uncertainties detailed from time to time in the company's SEC filings.