Tuesday, March 1, 2011

Derycz Scientific, Inc. (DYSC.OB) Signs Agreement to Acquire Techniques Appliquees aux Arts Graphiques, S.p.A.

Yesterday, Derycz Scientific, Inc. announced that they signed an agreement to acquire Techniques Appliquees aux Arts Graphiques, S.p.A. (TAAG) for 368,000 shares of Derycz common stock in addition to an earn-out.

Upon the acquisition of TAAG, Derycz will expand their European customer base as well as their presence in Europe. The transaction, based on the unaudited financial statements of TAAG, is expected to increase Derycz Scientific, Inc.’s annual consolidated revenues by over 50 percent. TAAG is a privately held company with headquarters outside Paris, France. The expectation is that the closing will occur on March 31, 2011.

Under the terms of the proposed transaction, Derycz Scientific, Inc. stock issued to the owners of TAAG will be subject to a three-year lock-up period. The owners may receive additional payments in cash or Derycz stock, at Derycz’s discretion, over the next five years based on net income milestones. Mario Vendemiati and Patrice Chambin, TAAG founders, will enter into employment agreements with TAAG and will continue to manage TAAG’s operations.

Founded in 2000, TAAG has 52 employees. Their headquarters and a production facility are in Grigny, France. They have an off-site storage and distribution center in Douai, located in northern France. TAAG offers printing, distribution, and information logistics services. The Company has core competencies in the professional production and distribution of clinical trial kits and clinical articles reprints for the life sciences industry. Life science companies use scientific literature in evidence-based promotions. They are increasingly looking for single-source suppliers to assist them in reaching healthcare professionals and consumers both in mature and emerging markets.

TAAG recorded unaudited revenues of approximately $13 million for their fiscal year ended December 31, 2010. Derycz Scientific, Inc. believes that TAAG will be immediately accretive to Derycz’s consolidated EBITDA and will have a positive impact on gross margin. They base this on TAAG’s unaudited revenue numbers, and assuming revenues remain steady or increase in 2011.

Derycz Scientific, Inc. will host an investment-community conference call today (March 1, 2011) beginning at 11:00 a.m. Eastern time (8:00 a.m. Pacific time) to discuss this announcement and answer questions. The call will be available via live webcast on the Company’s website at www.deryczscientific.com.

Headquartered in Santa Monica, California, Derycz Scientific, Inc. develops companies, products, services, and systems that facilitate the re-use of published content in a way that helps organizations achieve their marketing, communication, and research goals effectively and in compliance with copyright law and regulatory rules. Their subsidiary companies include Reprints Desk and Pools Press.

Reprints Desk offers a one-stop solution for reprints, ePrints, and single articles. They have delivered millions of articles globally.

Pools Press specialty is the reprint market. They provide professionally printed articles from medical and technical journals; prints booklets, catalogs, pamphlets, direct mail pieces and newsletters. In addition, they work with publishers who desire to outsource a portion of or all of their reprints business.

For more information visit: www.deryczscientific.com

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