PORTLAND, Ore., Dec. 14 /PRNewswire-FirstCall/ -- TRM Corporation announced today that it has entered into a definitive agreement to sell substantially all of the assets of its Canadian ATM business to EZEE ATM LP, a premier Canadian ATM portfolio management services provider. The estimated purchase price, which is subject to certain adjustments based on asset and liability valuations as of closing, is approximately CDN$14.75 million. Closing is expected to occur in January 2007. While the sale will dispose of almost all of TRM's Canada-based ATM operations, TRM has retained an ATM relationship relating to approximately 400 sites that is expected to generate operating income of approximately CDN $300,000 in fiscal 2006. The Company retains its existing Canada-based photocopy business, for which it continues to evaluate alternatives.
Proceeds from this sale will be used to pay down debt obligations.
"The sale of our Canadian ATM business is a component of our ongoing efforts to simplify our business operations. We continue to evaluate our strategic opportunities on a global basis," said Jeff Brotman, TRM President and Chief Executive Officer.
"This acquisition increases our installation footprint in Canada by 65 percent and solidifies our position as a leading consolidator in this industry," noted Chris Chandler, President & CEO of EZEE. "At the same time it offers immediate benefits in terms of improved transaction margins and geographic diversification, particularly in the Ontario market, and ownership of one of the best known ATM brands in the country -- Access Cash."
The Company was advised by Allen & Company LLC with respect to the transaction.
About TRM Corporation
TRM Corporation is a global consumer services company that primarily provides convenience ATM services in high-traffic consumer environments. TRM's ATM customer base is widespread, with retailers throughout the United States and with an extensive network of ATMs worldwide. TRM operates the second largest non-bank ATM network in the United States and the United Kingdom, as well as ATM locations in Germany.
FORWARD LOOKING STATEMENTS
Statements made in this news release that are not historical facts are forward-looking statements. Actual results may differ materially from those projected in any forward-looking statement. Specifically, there are a number of important factors that could cause actual results to differ materially from those anticipated in the forward-looking statements, such as consumer demand for our services; access to capital; maintaining satisfactory relationships with our banking partners; technological change; our ability to control costs and expenses; competition and our ability to successfully implement our planned growth. Additional information on these factors, which could affect our financial results, is included in our SEC filings. Finally, there may be other factors not mentioned above or included in our SEC filings that could cause actual results to differ materially from those contained in any forward- looking statement. Undue reliance should not be placed on any forward-looking statement, which reflects management's analysis only as of the date of the statement. We assume no obligation to update any forward-looking statements as a result of new information, future events or developments, except as required by federal securities laws.
