12 October 2006 — St Petersburg (FL): Danka Business Systems is to sell its European business to Ricoh Europe for $210 million in cash.
Danka chairman and CEO AD Frazier said: "The sale to Ricoh of our mature and successful Europe-based operations, which represents roughly half of our current total sales and operating profit, is a major step forward in our previously announced plan to release value through selected asset sales. The proceeds from the sale will help reduce indebtedness and enable us to focus on our US-based business where we believe the growth opportunities are substantial."
Shiro Sasaki, Ricoh chairman and CEO, said: "By acquiring Danka Europe, the Ricoh Group in Europe will be able to retain and expand its presence in Europe, and reinforce its sales and service network. The Ricoh Group in Europe will further promote business in high volume products, strengthen major account sales, and acquire further Total Document Volume."
The transaction is expected to complete by the end of the year.