Miami Computer Supply Corporation and Consolidated Media Systems, Inc. Announce Definitive Merger Agreement
DAYTON, Ohio, July 17 /PRNewswire/ -- Miami Computer Supply Corporation (Nasdaq: MCSC), a leading supplier of computer supplies and projection presentation products, today announced that it has signed a definitive merger agreement with Consolidated Media Systems, Inc., a $70 million (annual revenues) distributor of Business and Professional Audio-Video products, headquartered in Nashville, Tennessee. The terms were not disclosed. The transaction is subject to certain conditions, which must be accomplished before the closing.
Michael E. Peppel, President and Chief Executive Officer of MCSC stated, "This is our largest transaction to date and will push our annualized revenue run rate to over $300 million. Based on our current analysis, we expect CMS to add 7% to our EPS by the fourth quarter of 1998. CMS's leadership of Don Sandlin and John Miles, brings over forty years of industry contacts and expertise and a team of over 200 employees.
CMS was founded in 1978 and is one of the largest distributors of professional audio and video products with 23 offices throughout the country. "Consolidated Media Systems and MCSC will continue to operate under the same philosophy: 'Our people are our number one asset'. This merger with CMS will further separate us from the competition in terms of market share and service. This news will definitely surprise the industry," said Peppel.
Consolidated Media Systems distributes equipment from over 600 manufacturers including Sony, Panasonic, Sharp, Mitsubishi, Philips, JVC and many other nationally known professional audio and video suppliers. Its principal customers include virtually every major business sector.
Donald W. Sandlin, President of CMS added: "As CMS and our industry continues to experience rapid growth, we decided that a merger with MCSC would offer great synergy for additional opportunities for both of our businesses. MCSC is a dynamic company that compliments our operations and shares our business philosophy."
Miami Computer Supply Corporation went public in November of 1996. Since the IPO, Miami Computer Supply has increased the number of sales personnel from 53 to 228 and it annual sales from $107.4 million as of December 31, 1997 to a proforma annualized 12 month run rate of over $241 million (not including this transaction). |
