Tulip Computers has reached agreement with the receivers
regarding the take-over of the failed Commodore (excluding the
chain of shops).
PRESS RELEASE
's-Hertogenbosch, 16 September 1997
Tulip Computers has reached agreement with the receivers
regarding the take-over of the failed Commodore (excluding the
chain of shops).
In acquiring the Commodore brand name, Tulip Computers thus
gains access to the world-wide consumer market. Tulip Computers and
Commodore will have separate commercial operations in the market.
Both organizations will retain their own brand name and identity by
clear differentiation in terms of both products and distribution
channels. Tulip Computers will continue to concentrate on the
professional market through its own sales and marketing
organization. In contrast, Commodore will for the time being focus
on the European consumer market (SoHo market: Small office, Home
office) and company schemes for private purchase of PC's by their
staff; this will be achieved by sales of its products through chain
store outlets and corporate chains.
Strategic motivation
Commodore products will be manufactured exclusively in the Tulip
Computers factory in 's-Hertogenbosch.
The increase in scale will enable gains through synergy to be
achieved in various areas. Firstly, there will be a significant
increase in purchasing power, which will give the company a
stronger negotiating position towards suppliers. This will lead to
better purchasing conditions. In addition, the integration of
Commodore in the Tulip organization will enable the ultra-modern
Tulip Computers factory, opened in 's-Hertogenbosch in early 1997,
to be utilized to much higher capacity.
By making use of the international sales offices of Tulip
Computers, it will be possible to accelerate the international
expansion of Commodore and to improve service to the customer as a
result of centralization.
The result of all of these measures will be that considerable
savings can be made in production, sales and logistics costs and
overheads.
In the short term the take-over will result in dozens of new
jobs at Tulip Computers in 's-Hertogenbosch. In the longer term
over 150 new jobs are expected to be created.
Capital reinforcement
To finance this transaction and to reinforce the shareholders'
equity of Tulip Computers, the shareholders' equity will be
extended by NLG 21.5 million by the issue of 1,850,000 new Tulip
Computers N.V. shares at a nominal price of NLG 0.50. As a result
of this expansion of the share capital, the total number of
outstanding shares will be some 6,500,000. These new shares will be
placed with various parties, with which agreement has already been
reached. The guarantee capital will moreover be increased by NLG 25
million by means of an AA loan granted by De Nationale
Investeringsbank N.V.
The Board
For further information please contact:
Tulip Computers
Attn.: Marketing Communications
PO box 3333
5203 DH 's-Hertogenbosch
The Netherlands
Tel: +31 (0)73-6405333
Fax: +31 (0)73-6405800
To find more about Tulip products visit them at Tulip.Com
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