Pitney Bowes Expands Global Reach
Pitney Bowes Inc. (NYSE: PBI) today announced that it has completed two transactions that extend its penetration and reach outside of the U.S. — the acquisition of certain assets of Kilburn Office Automation Ltd. (Kilburn) in India and the formation of a joint venture with Semco Participacoes Limitada (Semco) in Brazil. Through these transactions Pitney Bowes is establishing direct sales operations in two of the world's top fifteen mailing markets, whose combined mail volumes are approximately 23 billion pieces annually.
These transactions are good news for Pitney Bowes customers and shareholders according to Chairman and CEO Michael J. Critelli. "We said that global expansion was one of the keys to success in delivering enhanced customer and shareholder value. In our growth strategies we identified India and Brazil as markets where business mail usage is emerging, thereby creating an opportunity to help mailers enhance their efficiency and effectiveness through the use of our advanced mailing equipment, systems and software. We are pleased to be associated with Kilburn in India and Semco in Brazil because both are respected organizations that have built up brand equity in their markets. Through the employees in India and the partnership in Brazil we plan to leverage their expertise, familiarity with the market, and relationships to deliver quality solutions to customers.
"We are beginning to see the benefits of our focus on expansion outside of the U.S., as reflected in the double-digit organic revenue growth that our international operations generated in the fourth quarter 2004. Our international operations are helping to fuel the company's evolution to be a bigger and stronger company, as our total revenues outside of the U.S. have grown to approximately 25 percent, compared to 17 percent four years ago. These new direct operations help us continue building momentum as we serve more customers and provide more value to our existing customers with multinational operations."
India Post handles approximately 14 billion pieces of mail per year, making it second in Asia and sixth in global postal volumes. Kilburn had acted as a distributor for some Pitney Bowes mailing products since 1996. The new direct operation, known as Pitney Bowes India Private Limited (Pitney Bowes India), will provide mailing equipment and systems. The business will be headquartered in New Delhi, and it will have offices in 17 other locations throughout the country.
Correios, the Brazilian post, handles approximately 9 billion mail pieces annually, making it the 13th largest postal service in the world. The new direct operations in Brazil will be known as Pitney Bowes Semco Equipamentos e Servicos Limitada, and it will offer a wide range of mailing equipment, software, and services, including production mail. The operation will be headquartered in Sao Paulo.
Though no financial details were disclosed, neither transaction will have a material impact on the company's results.
Pitney Bowes is the world's leading provider of integrated mail and document management systems, services and solutions. The $5 billion company helps organizations of all sizes efficiently and effectively manage their mission-critical mail and document flow in physical, digital and hybrid formats. Its solutions range from addressing software and metering systems to print stream management, electronic bill presentment and presort mail services. The company's 80-plus years of technological leadership have produced many major innovations in the mailing industry, and it is consistently on the Intellectual Property Owner's list of top U.S. patent holders. With approximately 33,000 employees worldwide, Pitney Bowes serves more than 2 million businesses through direct and dealer operations. More information about the company can be found at http://www.pb.com .
The statements contained in this news release that are not purely historical are forward-looking statements with the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements may be identified by their use of forward-looking terminology such as the words "expects," "anticipates," "intends" and other similar words. Such forward-looking statements include, but are not limited to, statements about growth strategies, market expansion, etc. Such forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected. These risks and uncertainties include, but are not limited to: severe adverse changes in the economic environment, timely development and acceptance of new products or gaining product approval; successful entry into new markets; changes in interest rates; and changes in postal regulations, as more fully outlined in the company's 2003 Form 10-K Annual Report filed with the Securities and Exchange Commission. In addition, the forward-looking statements are subject to change based on the timing and specific terms of any announced acquisitions. The forward-looking statements contained in this news release are made as of the date hereof and we do not assume any obligation to update the reasons why actual results could differ materially from those projected in the forward-looking statements.
Sheryl Battles
