MEDIA RELEASE PR41143
SICPA Has Acquired Meyercord Revenue Inc. From Illinois Tool Works
SPRINGFIELD, Va., Sep. 9 /PRNewswire-AsiaNet/ --
Move Paves Way for High-Tech Tobacco Tax Stamps; Tax Revenue
Losses on Tobacco Estimated at $5 Billion Nationwide
SICPA Security Inks and Systems USA, Inc., a leading provider of integrated government security solutions on
high excise tax products, today announced that it has acquired Meyercord Revenue Inc., previously a wholly-
owned subsidiary of Illinois Tool Works Inc. (NYSE: ITW). The transaction will combine SICPA's international
government tax platform expertise with Meyercord's experience in producing and distributing tobacco tax stamps
for U.S. states and municipalities. The transaction closed on September 2nd. Financial terms were not disclosed.
ITW has retained a related business that manufactures and services tax stamp application equipment.
Charles Finkel, SICPA's Executive Vice President said, "The combination
of SICPA and Meyercord technology has already proven itself in California,
where our companies work together to produce high-tech, paper-based cigarette
tax stamps that help prevent counterfeiting and recover lost revenue on
untaxed product. And we have recently signed a similar contract in
Massachusetts and implementation is currently in progress. Our goal is to
make this technology as widely available and easily implemented throughout
the United States, as well as to enhance existing state and federal tobacco
tax collection systems."
According to 2009 statistics from the Bureau of Alcohol, Tobacco,
Firearms and Explosives, the United States loses $5 billion per year in state
taxes due to counterfeit tobacco - a figure which some sources view as
conservative. California, which in 2005 implemented a program to enhance its
cigarette-tax enforcement practices, including use of high-tech stamp
technology, estimates the state has already recovered more than $150 million
in additional tax revenue each year since the program began.
Meyercord currently provides 250 different tax stamps to 47 states,
approximately 140 municipalities and Native American tribes. As a part of the
acquisition of Meyercord, SICPA plans to retain the current employment level
at Meyercord's facility in Carol Stream, Illinois, near Chicago.
"We are committed to Meyercord, its management and employee base," said
Jim Bonhivert, President and Chief Executive Officer of SICPA North America.
"We plan to profitably grow the current operation and its reach while moving
forward with technology that contributes to the public good."
About SICPA
SICPA is the leading global provider of banknote security inks and
integrated government security systems on high excise tax products in both
state and federal jurisdictions currently securing over 40 billion tax stamps
worldwide. SICPA has successfully deployed nation-wide and state-operated
product tracking and tracing systems in several countries in South America,
North America, Europe and Asia.
SICPA is a Swiss company, founded in 1927, with headquarters in Lausanne,
Switzerland. At the core of SICPA's security expertise are high-technology
security inks which protect the majority of the world's banknotes, identity
documents as well as many other value documents from counterfeiting and
fraud. The company employs more than 2,200 people worldwide and is
established in 22 countries on 5 continents, with products sold to most
countries worldwide. SICPA is a trusted government security solutions
provider to governments, central banks and high-security printers.
Media contacts:
Samita Mishra
Senior Marketing Manager
SICPA Security Solutions SA
Tel +41 21 627 62 66 Fax +41 21 627 61 80
samita.mishra@sicpa.com
Mariam Ozaltin
Government Affairs
SICPA Product Security LLC
Tel +1 212-308-6933 Fax +1 212-308-1009
mariam.ozaltin@sicpa.com
SOURCE: SICPA
CONTACT: Samita Mishra, Senior Marketing Manager, SICPA Security Solutions SA, +41-21-627-62-66, or Fax,
+41-21-627-61-80, samita.mishra@sicpa.com; or Mariam Ozaltin, Government Affairs, SICPA Product Security
LLC, +1-212-308-6933, or Fax, +1-212-308-1009, mariam.ozaltin@sicpa.com
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