WASHINGTON, Aug 30, 2006 (BUSINESS WIRE) — Liquidity Services, Inc. (LSI), a leading online auction
marketplace for wholesale, surplus and salvage assets, today announced
it has agreed to acquire the wholesale business of STR, Inc. (STR) for
$8.5 million. STR is a California-based remarketer of reverse supply
chain merchandise, including retail customer returns, overstocks,
shelf pulls, and seasonal merchandise, to wholesale buyers.
The acquisition strengthens LSI’s business by adding STR’s
long-standing relationships with traditional discount store chain
buyers, as well as a complementary base of large commercial sellers,
including Fortune 500 retailers. In addition, the acquisition will
expand LSI’s presence on the West Coast through the addition of an
approximately 117,000 square foot leased distribution center in
southern California which will provide efficiencies for both domestic
and international buyers and sellers.
“We believe that the acquisition of STR is a natural complement to
our organization and is a win-win for LSI’s and STR’s established
customer base of sellers and buyers,” said Bill Angrick, Chairman and
CEO of LSI. “These customers will be able to benefit from LSI’s
innovative solution as well as the STR team’s over 30 years of product
domain expertise in major categories such as electronics, apparel,
entertainment and general merchandise. The addition of more seller and
buyer activity also accelerates our self-reinforcing growth dynamic
and increases the value we provide our clients through our online
auction marketplaces such as www.liquidation.com.”
LSI expects the STR deal to add approximately $18 million of
revenues and approximately $480,000 in net income to its fiscal year
The acquisition is expected to close in October 2006 and is
subject to customary closing conditions and post-closing price
adjustments related to working capital items.
About Liquidity Services, Inc. (LQDT)
Liquidity Services, Inc. (NASDAQ:LQDT) and its subsidiaries enable
corporations and government agencies to market and sell surplus assets
and wholesale goods quickly and conveniently using online auction
marketplaces and value-added services. The company is based in
Washington, D.C. and has 350 employees. Additional information can be
found at: www.liquidityservicesinc.com.
This document contains forward-looking statements made pursuant to
the Private Securities Litigation Reform Act of 1995, including,
without limitation, statements regarding the potential benefits,
impact on fiscal 2007 operating results and expected closing date, of
the acquisition of STR’s business by LSI. The outcome of the events
described in these forward-looking statements is subject to known and
unknown risks, uncertainties and other factors that may cause our
actual results to differ materially from any future results expressed
or implied by these forward-looking statements. You can identify
forward-looking statements by terminology such as “expects,” or the
negative of these terms or other comparable terminology. We cannot
guarantee future results, levels of activity, performance or
achievements. There are a number of risks and uncertainties that could
cause our actual results to differ materially from the forward-looking
statements contained in this document. Important factors that could
cause our actual results to differ materially from those expressed as
forward-looking statements are set forth in the Company’s Quarterly
Report on Form 10-Q for the quarter ended June 30, 2006, including,
but not limited to, those set forth in Part II, Item IA (Risk
Factors). There may be other factors of which we are currently unaware
that may cause our actual results to differ materially from the
forward-looking statements. All forward-looking statements apply only
as of the date of this document and are expressly qualified in their
entirety by the cautionary statements included in this document.
Except as may be required by law, we undertake no obligation to
publicly update or revise any forward-looking statement occurring
after the date of this document.
SOURCE: Liquidity Services, Inc.
Liquidity Services, Inc.
Julie Davis, 202-558-6234