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Paxar has acquired the business and assets of Alkahn Labels, including all of the equity of Alkahn-Hong Kong, for US$25 million plus the assumption of certain trade liabilities. Alkahn, which produces woven labels at facilities in Hong Kong and the US, had sales in 2002 of approximately US$45 million. Philip Kahn, president of Alkahn, said, "Paxar has established a very strong global footprint that can provide woven labels everywhere the customer needs to be supplied. In addition, Paxar’s broad range of apparel identification and tracking products will enhance the products and services presently sold by Alkahn. As a result, I am confident that by becoming part of the Paxar family, Alkahn will be able to deliver significantly greater value to our customers."Arthur Hershaft, chairman and CEO of Paxar, says, "Alkahn is a company that has a long history and a great reputation as a leader in the woven label business. This acquisition, which will afford many synergies and cost reduction opportunities, is strategically significant in that it will provide us with an exceptionally strong platform to grow our woven label business. Woven labels are a critical part of Paxar’s product offering because they support the brand image for many of our customers."
Max Kahn, chairman and CEO of Alkahn, commented, "As we evaluated our options, we realised that Alkahn would fit best as part of the Paxar organization because we share the same customer-oriented, entrepreneurial culture. I am pleased that Philip and his management team will play a significant role in managing Paxar-Alkahn’s U.S. woven label business."
