Document Security Systems Inc. plans to buy the assets of DPI of Rochester
Document Security Systems wants to acquire printer's assets
Bennett J. Loudon
Staff writer
Document Security Systems Inc., an anti-counterfeiting technology company, plans to buy the assets of DPI of Rochester, a printing company that has declared bankruptcy.
DPI, housed in a 25,000-square-foot facility at 1560 Emerson St., is a privately owned digital and commercial offset printing company with sales of about $7.6 million in 2007.
Document Security, at 28 E. Main St., is a public company with annual sales of about $6 million.
DPI's sales have grown steadily for several years but flattened out as the economy soured. Document Security has seen dramatic sales growth, but the company has failed to realize a profit.
Shares of Document Security, which reached a 52-week high of $7.95 a year ago, closed Friday at $1.82, up 22 cents for the day.
The deal is subject to the approval of U.S. Bankruptcy Court. The sale price and financing were not disclosed.
The purchase is expected to be completed by the end of the year, but other interests will have an opportunity to bid against Document Security for DPI's assets, according to Philip Jones, vice president of finance of Document Security.
Matt Kellman, executive vice president of DPI, said the Chapter 11 bankruptcy case was initiated as part of the acquisition arrangement. Jones declined to comment on that aspect of the deal.
Document Security creates documents such as birth certificates, driver licenses, passports and voter registration cards for international clients. By acquiring a quality printing operation, it will be able to maintain direct control over all aspects of those operations.
"We've been outsourcing a growing amount of our business and we made a decision to seek capabilities internally, either through an acquisition, or internally by building up the capabilities. This meets that goal," Jones said.
Document Security has 53 employees; DPI has 44. The deal is not expected to affect any jobs.
"The acquisition of DPI allows (Document Security) to bid on much larger contracts and potentially have a much more profitable business," Kellman said.
BLOUDON@DemocratandChronicle.com
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