Cerplex Group Acquires Xerox Facility in France
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TUSTIN — The Cerplex Group Inc. said it has acquired a Xerox-owned electronics repair and refurbishing facility in northern France as part of a deal that could boost Cerplex’s revenue by $80 million over the next two years.
James T. Schraith, chief executive of Cerplex, said the deal is the biggest acquisition the company has ever made, and it “marks a substantial moment in our company’s history.”
Terms of the transaction were not disclosed.
Cerplex, a Tustin-based company, provides parts and repair services to computer companies and other electronics manufacturers. The facility in France has operated since 1974 as a refurbishing center for Rank Xerox, the European arm of the U.S. maker of copiers and printers.
As part of the deal, Cerplex will acquire a 38-acre site, including a 335,000-square-foot repair facility near Lille, France. The deal also includes a four-year contract under which Cerplex will provide manufacturing and repair services to Rank Xerox. As a result, Rank Xerox becomes Cerplex’s largest customer, Schraith said.
But Schraith said Cerplex hopes the acquisition also will enable the company to make similar deals with Toshiba, Minolta and other makers of printers and copiers. Further, he said Cerplex will gradually expand the capabilities of the site, so that workers there can refurbish computers, monitors and a range of other electronics products.
“It really gives us an anchor on the continent,” Schraith said.
Revenue from the Lille site is expected to be about $30 million for the balance of 1996, growing to about $50 million in 1997, Schraith said. Last year, Cerplex reported a loss of $39.4 million on sales of $144 million.
Schraith said the Lille facility will serve Cerplex customers across Western Europe, including Belgium, Germany, France, as well as portions of Italy and Spain.
Cerplex has three additional facilities in Europe, including two in the United Kingdom.
The company will keep all 670 Rank Xerox employees at the facility, boosting Cerplex’s European employment to about 1,200, Schraith said.
Cerplex’s stock closed at $6.75 a share Wednesday, down 25 cents a share in trading on the Nasdaq stock market.
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Profile: The Cerplex Group Inc.
Business: Computer parts and repair
Headquarters: Tustin
CEO/President: James T. Schraith
Founded: 1990
Went public: 1993
Market: Nasdaq
Sales (in millions)
1991: $19.8
1992: $61.5
1993: $78.9
1994: $126.9
1995: $144.3
Net income
1991: $325,000
1992: $23,000
1993: $5,566,000
1994: $684,000
1995: -$39,400,000
Sources: The Cerplex Group Inc., Bloomberg News Service; Researched by JANICE L. JONES / Los Angeles Times
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