SOURCE: American Reprographics Company

December 19, 2007 08:00 ET

American Reprographics Company Acquires Florida-Based NGI

Solidifies Leadership Position in Florida With $23 Million Market Leader

Eight New Locations Further Consolidates Southeastern Footprint

WALNUT CREEK, CA--(Marketwire - December 19, 2007) - American Reprographics Company (NYSE: ARP), the nation's leading provider of reprographics services and technology, today announced the acquisition of the assets of NGI USA, Inc. and its subsidiaries, the largest provider of reproduction, document management and related services in Florida. The acquisition further strengthens ARC's presence in key markets on the Southeast, and advances the company's strategy of obtaining a leading position in major metropolitan areas across the country.

NGI operates eight locations in Tampa, St. Petersburg, Orlando, Ocala, and Jacksonville, Florida, as well as Atlanta, Georgia. Consistent with American Reprographics Company's operating philosophy, NGI provides reprographic equipment and services at their customers' sites, a practice frequently referred to as "facilities management" or "FMs." Year-end revenues in 2006 for NGI were approximately $23 million. Terms of the acquisition were not disclosed.

Martha Korman, Chairman of NGI, said, "During the past 20 years we built our company from the ground up into a strong, multi-million dollar regional operation. Joining forces with ARC gives us the ability to take the business to new heights. We will be able to offer our clients new technological solutions, as well as provide a more comprehensive, nationwide service."

"There are tremendous synergies as a result of bringing our companies together," said Greg Williams, President & COO of NGI. "With the depth of resources and experience ARC can provide, we will strengthen the leadership we offer in each of our markets, and provide new career opportunities for our employees."

"NGI is a great addition to ARC and we are delighted by this acquisition," said K. "Suri" Suriyakumar, President and CEO of American Reprographics Company. "NGI's management is well known in the industry and they have a reputation for running a very professional organization. We welcome them to the team and look forward to advancing their progress. The combination of our existing Florida operations with NGI gives us a very strong presence throughout the state, and enhances our Southeastern footprint as a whole."

About American Reprographics Company

American Reprographics Company is the leading reprographics company in the United States providing business-to-business document management technology and services to the architectural, engineering and construction, or AEC industries. The Company provides these services to companies in non-AEC industries, such as technology, financial services, retail, entertainment, and food and hospitality, which also require sophisticated document management services. American Reprographics Company provides its core services through its suite of reprographics technology products, a network of more than 300 locally-branded reprographics service centers across the U.S., and on-site at more than 4,000 customer locations. The Company's service centers are arranged in a hub and satellite structure and are digitally connected as a cohesive network, allowing the provision of services both locally and nationally to more than 140,000 active customers.

Forward-Looking Statements Disclaimer

This press release contains forward-looking statements that fall within the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 regarding future events and the future financial performance of the Company. Words such as "will," "take the business to new heights" and "advancing their progress," and similar expressions also identify forward-looking statements. We wish to caution you that such statements are only predictions and actual results may differ materially as a result of risks and uncertainties that pertain to our business. These risks and uncertainties include, among others:

--  Future downturns in the architectural, engineering and construction
    industries could diminish demand for our products and services;
--  Competition in our industry and innovation by our competitors may
    hinder our ability to execute our business strategy and maintain our
--  Failure to anticipate and adapt to future changes in our industry
    could harm our competitive position;
--  Failure to manage our acquisitions, including our inability to
    integrate and merge the business operations of the acquired companies, and
    failure to retain key personnel and customers of acquired companies could
    have a negative effect on our future performance, results of operations and
    financial condition;
--  Dependence on certain key vendors for equipment, maintenance services
    and supplies, could make us vulnerable to supply shortages and price
--  Damage or disruption to our facilities, our technology centers, our
    vendors or a majority of our customers could impair our ability to
    effectively provide our services and may have a significant impact on our
    revenues, expenses and financial condition;
--  If we fail to continue to develop and introduce new services
    successfully, our competitive positioning and our ability to grow our
    business could be harmed.

The foregoing list of risks and uncertainties is illustrative but is by no means exhaustive. For more information on factors that may affect future performance, please review our SEC filings, specifically our annual report on Form 10-K for the year ended December 31, 2006, our final prospectus supplement dated March 8, 2007, and our quarterly reports on Form 10-Q for the quarters ended March 31, 2007, June 30, 2007, and September 30, 2007. These documents contain important risk factors that could cause actual results to differ materially from those contained in our projections or forward-looking statements. These forward-looking statements are based on information as of December 19, 2007, and except as required by law, the Company undertakes no obligation to update or revise any forward-looking statements.

Contact Information

  • Contacts:
    David Stickney
    VP of Corporate Communications
    Phone: 925-949-5100
    Email: Email Contact

    David Pasquale
    The Ruth Group
    Phone: 646-536-7006
    Email: Email Contact