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LOUISVILLE, Colo. - American Coin Merchandising Inc., a supplier of coin-operated amusement vending equipment, today announced a definitive agreement to be acquired by Coinstar Inc., the leader in self-service coin counting and supplier of e-payment services, for $235 million in cash.
Coinstar said it will issue new debt to pay for the acquisition, and will not assume any of American Coin's existing debt. The transaction is expected to be completed during the third quarter, the companies said.
Dave Cole will remain the c.e.o. of Coinstar Inc. Randy Fagundo, currently the c.e.o. of ACMI, will become the president of ACMI and will continue to lead the amusement vending business. He will report directly to Cole.
"We are delighted to be joining forces with Coinstar and see great value in their technologically-advanced network and established retail relationships," said Fagundo. "Tremendous opportunity exists as we combine our areas of expertise and leverage our ability to cross-sell products into a broadened customer base."
Coinstar's Cole noted, "We are very excited about moving forward with the acquisition of ACMI. We believe that the combined companies will diversify Coinstar's business and greatly benefit shareholders.
"ACMI is a leader in self-service amusement vending with an extensive distribution network, a strong and growing revenue stream, and customer-focused culture. The combined strengths of the two companies will allow us to penetrate new classes of trade and provide retailers with a single source for a range of front-end consumer services," he added.
ACMI is the leading owner/operator and franchisor of coin-operated amusement vending equipment placed at retail locations. ACMI has placed more than 167,000 pieces of vending equipment at over 18,000 retail locations. ACMI's portfolio of amusement vending equipment consists predominantly of redemption machines such as skill cranes, bulk vending equipment that dispenses candy and novelty items, kiddie rides and video games.
Coinstar Inc. owns and operates a network of nearly 11,000 automated self-service coin-counting machines that provide consumers with a convenient means to convert loose coins into cash. In addition, Coinstar distributes prepaid products through point-of-sale and non-coin-counting kiosks in over 13,000 drugstores, universities, shopping malls and convenience stores, bringing the total to nearly 24,000 distribution points throughout the United States, Canada and the United Kingdom. Combined, Coinstar and ACMI will have more than 40,000 distribution points.