DANVILLE, Va., May 13 /PRNewswire-FirstCall/ -- Alliance One
International, Inc. (NYSE: AOI), announced today completion of the merger of
DIMON Incorporated and Standard Commercial Corporation. The merger,
originally announced November 8, 2004, creates a leading global independent
leaf tobacco merchant with broad geographic processing capabilities, a
diversified product offering and an established customer base, including all
of the world's major consumer tobacco products companies. As a result of the
merger, Alliance One is one of only two global independent leaf tobacco
merchants, each with substantially similar global market shares.
Brian J. Harker, Chairman and Chief Executive Officer, stated, "With
Alliance One we are creating a strategic profile that will be fully in step
with the evolution of our industry and our customers' needs. Alliance One
will emphasize value-added services, industry-leading tobacco processing
capabilities, information technology advancements, new product development and
global agronomic programs. We will now have the scale that will better
position us to partner with all our customers in a true supply chain
alliance."
DIMON and Standard Commercial have completed an extensive integration
planning process, incorporating internal expertise from both companies, as
well as external consultants, and implementation of those plans has
immediately begun today. Through the rationalization of processing capacity
and the elimination of duplicative regional and corporate overhead, Alliance
One expects to realize over $60 million in potential annual pre-tax cost
savings. The company expects to implement substantially all of the proposed
cost savings initiatives and to realize 65% of potential annual cost savings
over the next year, with 100% to be realized in fiscal year 2007.
In conjunction with the merger, Alliance One has also today successfully
completed a comprehensive refinancing transaction comprising a new $650
million senior secured bank facility, $315 million of Senior Notes due 2012,
and $100 million of Senior Subordinated Notes due 2012. The company's new
capital structure is expected to facilitate the financial flexibility required
by the merged operations, while providing substantial long-term liquidity.
Robert E. (Pete) Harrison, President and Chief Operating Officer, stated,
"Worldwide consumption trends, increasing taxation and government regulation
have combined to create a new operating environment for our industry. We look
forward to capitalizing on emerging opportunities and addressing new
challenges using the combined talents and resources of our integrated
businesses to ally our supplier and customer needs with our own."
Alliance One is a leading independent leaf tobacco merchant. It selects,
purchases, processes, stores, packs and ships tobacco grown in over 45
countries, and serves the world's large multinational cigarette manufacturers
in over 90 countries. Beginning Monday, May 16, 2005, Alliance One's shares
will trade under the ticker AOI. For more information visit the company's
website at http://www.aointl.com.
This press release contains "forward-looking statements" as defined in the
Private Securities Litigation Reform Act of 1995. These statements are based
on current expectations of future events. Such statements include, but are not
limited to, statements about future financial and operating results, plans,
objectives, expectations and intentions and other statements that are not
historical facts. Such statements are based on the current beliefs and
expectations of Alliance One's management and are subject to significant risks
and uncertainties. If underlying assumptions prove inaccurate or unknown
risks or uncertainties materialize, actual results may differ materially from
current expectations and projections. The following factors, among others,
could cause actual results to differ from those set forth in the forward-
looking statements: changes in the timing of anticipated shipments, changes
in anticipated geographic product sourcing, political instability in sourcing
locations, our ability to implement cost savings initiatives, currency and
interest rate fluctuations, shifts in the global supply and demand position
for tobacco products, and the impact of regulation and litigation on Alliance
One's customers. Additional factors that could cause Alliance One's results
to differ materially from those described in the forward-looking statements
can be found in Alliance One's (previously DIMON Incorporated) Annual Reports
on Form 10-K/A for the fiscal year ended March 31, 2004, and other filings
with the Securities and Exchange Commission (the "SEC") which are available at
the SEC's Internet site (http://www.sec.gov).
SOURCE Alliance One International, Inc.
CONTACT:
Ritchie L. Bond of Alliance One International, Inc.
+1-434-791-6952
Web site: http://www.aointl.com
(AOI DMN)