ELKRIDGE, Md. – Jan. 25, 2007 – Global performance improvement solutions provider General Physics Corporation (GP), the operating subsidiary of GP Strategies Corporation (NYSE:GPX), announced today that on January 23, 2007 it completed its previously announced acquisition of certain operating assets and the business of Sandy Corporation (Sandy), a leader in custom product sales training and part of the ADP Dealer Services division of Automatic Data Processing, Inc. (NYSE:ADP). The purchase price at closing was $11.7 million, which consisted of $5.2 million in cash paid to ADP out of GP's cash on hand and approximately $6.5 million of liabilities assumed by GP to complete contracts. In addition, GP may be required to pay ADP up to an additional $8.0 million, contingent upon Sandy achieving certain revenue targets (as defined in the purchase agreement) during the two twelve month periods following the completion of the acquisition.
Sandy offers custom sales training and print-based and electronic publications primarily to the automotive industry and generates approximately $60 million of revenue on an annual basis. The acquisition of Sandy will enhance GP's existing service offerings by adding custom product sales training to its offering mix. Sandy has an exceptional reputation for providing dealership product sales training solutions to manufacturers in the U.S. automotive industry, a market Sandy has served for over 30 years. GP will support the needs of Sandy's current customers and intends to support the expansion of
Sandy's solutions offerings worldwide and offer Sandy's unique innovative solutions to existing clients of GP. This acquisition is consistent with GP's strategy of being a full-service provider of custom learning solutions to Fortune 500, government and other commercial industries.
An important feature of this acquisition is that Sandy remains fully staffed to continue delivering client services with the same creative teams and the same leadership. Sandy was acquired as a complete business unit with all the leadership and management intact. Fred Strickland will continue as President. Dave Gugala and Ernie Graham will continue to lead the marketing and creative operations, and Michael Tuson will continue to manage the Finance team for Sandy. This approach is consistent with GP's commitment to delivering quality services and superior customer satisfaction.
GP is the principal operating subsidiary of GP Strategies Corporation (NYSE: GPX). GP is a global performance improvement solutions provider of training and e-Learning solutions, management consulting and engineering services. GP's solutions improve the
effectiveness of organizations by delivering innovative and superior training, consulting and business improvement services, customized to meet the specific needs of its clients. Clients include Fortune 500 companies, manufacturing, process and energy industries, and other commercial and government customers. Additional information may be found at www.gpworldwide.com.
Scott N. Greenberg
Chief Executive Officer
Chief Financial Officer
Ann M. Blank