Indianapolis –
Brightpoint, through its wholly owned indirect subsidiary, Touchstone
Acquisition, has entered into an agreement to acquire Touchstone Wireless
Repair and Logistics.
Under the terms of
the agreement, Brightpoint will pay $80 million in cash at closing to acquire Touchstone.
Touchstone
provides repair, re-manufacture and reverse logistics services to the wireless
industry and is a privately held company based in Hatfield, Pa. With the
Touchstone acquisition, Brightpoint further expands its solutions offering and
creates the wireless industry’s most efficient supply chain solutions provider,
the company said in a statement.
Brightpoint
expects to fund the purchase price from its senior revolving credit facility.
The proposed acquisition is expected to close by Dec. 31, and is subject to
customary closing conditions including, without limitation, the receipt of
certain third-party and regulatory approvals.
“By combining
Brightpoint’s strength in forward logistics with Touchstone’s expertise in the
repair and reverse logistics arena, we are creating a new class of solutions
provider in the wireless industry,” said Brightpoint Americas president, J.
Mark Howell. “Adding a robust, in-house repair operation with more than 300
trained repair technicians, solidifies and extends Brightpoint’s leadership
position in the wireless supply-chain solutions arena. This combination enables
us to increase our value proposition to our customer base of leading network
operators, manufacturers, and retailers by offering true end-to-end supply
chain services and provides the expertise and infrastructure for additional
services such as wireless device recycling and refurbishment.”
“We are proud of
our significant accomplishments and reverse logistics innovations within the
wireless industry,” said Allen Hurley, chairman and co-founder, Touchstone
Wireless. “We’ve set a superior standard for quality, reliability, and customer
service for our carrier and manufacturer partners during our decade-long
history. The combination of our companies provides Touchstone with access to
greater resources, expands our business by utilizing Brightpoint’s extensive
network of customer and manufacturing partners, and strengthens Brightpoint’s
product and service portfolio. I see this combination as a tremendous
opportunity for Touchstone’s nearly 1,800 employees.”
