SOURCE: Bowne & Co., Inc.

June 26, 2008 17:26 ET

Bowne to Acquire Capital Systems, Inc.

Addition of Midtown Manhattan Office and Expanded Blue Chip Client Base Extend Bowne's Reach in Financial Communications Services

NEW YORK, NY--(Marketwire - June 26, 2008) - Bowne & Co., Inc. (NYSE: BNE), a leader in shareholder and marketing communications services, today announced it has entered into a definitive agreement to acquire the US-based assets and operating business of Capital Systems, Inc. ("Capital"), a leading provider of financial communications based in midtown Manhattan. The transaction is subject to the satisfaction of customary closing conditions, and the Company expects to close the transaction within ten days. The purchase price was approximately $13 million.

"We're enthusiastic about this transaction, as it supports our strategy to grow through strategic bolt-on acquisitions that align with our core business," said David J. Shea, Chairman and CEO of Bowne.

"The acquisition of Capital will help us increase our market share in New York -- the largest market for our services. We're gaining a midtown office with great people and expanding our blue-chip client base," said Bill Penders, President of Bowne.

Capital specializes in the creation, filing and distribution of time-sensitive financial communications by providing complete document production services, including composition, filing, printing, distribution and electronic access. With 2007 revenue of approximately $48 million, Capital enables Bowne to further extend its reach into its key existing verticals: investment management, compliance reporting and capital markets services. Capital provides mutual fund quarterly and annual reporting and disclosure documents, such as SEC filings, proxies and 10-Ks, as well as capital markets services for equity offerings, debt deals, securitizations, and mergers and acquisitions.

"Bowne is the market leader with a solid strategy," said Ron Kastner, Chairman and CEO of Capital Systems. "We believe our clients will benefit from Bowne's integrated offset and digital capabilities, global footprint and commitment to quality, and I am confident that they will continue to receive first class customer service."

Capital's presence in midtown Manhattan complements Bowne's existing facility in the downtown financial district. Its capabilities will be integrated into the Company's distributive print network, which includes digital and offset printing, binding, mail services and fulfilment capabilities.

Houlihan Lokey served as the financial advisor to Capital on this transaction.

About Bowne & Co., Inc.

Bowne & Co., Inc. (NYSE: BNE) provides shareholder and marketing communications services around the world. Dealmakers rely on Bowne to handle critical transactional communications with speed and accuracy. Compliance professionals turn to Bowne to prepare and file regulatory and shareholder communications online and in print. Marketers look to Bowne to create and distribute customized, one-to-one communications on demand. With 3,500 employees in 60 offices around the globe, Bowne has met the ever-changing demands of its clients for more than 230 years. For more information, please visit www.bowne.com.

About Capital Systems Inc.

Founded in 1990 by Ron Kastner, Capital's U.S. business is a leading financial print solution provider with longstanding relationships among top financial services companies.

Contact Information

  • Investor Relations Contact:
    John J. Walker
    SVP & Chief Financial Officer
    212-658-5804
    john.walker@bowne.com

    Media Contact:
    Pamela Blum
    Corporate Communications Manager
    212-658-5884
    pamela.blum@bowne.com

    Bowne & Co., Inc.
    55 Water Street
    New York, NY 10041
    (212) 924-5500
    Fax: (212) 658-5871