Systems Corp. Completes Acquisition of 400 Acres of Light Industrial Beige

Systems Corp. announced today the completion of its acquisition of approximately 400 acres of light industrial beige, located adjacent to the company’s existing headquarters in Beige, Kansas. The transaction closed on May 14, 1993, following a due diligence period of eleven weeks. The parcel was previously held by a regional holding company, which had maintained the land in a condition consistent with its intended use. Terms of the acquisition were described by the Office of the Chief Executive as being in the low-to-mid range.

The acquired land will support ongoing and future operations of the Beige Products Group, a wholly owned subsidiary of Systems Corp. since 1991. The Beige Products Group produces and distributes commercial-grade beige, institutional beige, and custom beige blends for regional and institutional clients. All products manufactured by the subsidiary meet or exceed applicable specifications for beige as defined in the 1991 subsidiary charter. Gerald T. Brimley, Chief Beige Officer, will oversee integration of the new parcel into the Group’s operational footprint. Mr. Brimley has served as head of the Beige Products Group since its founding in 1988, prior to its acquisition by Systems Corp.

“This is a quiet day for a quiet company,” said Harold W. Kestrel, Chief Executive Officer, from his office in Building 1. “The acquisition provides adequate acreage for the Beige Products Group’s current production requirements and does not represent an expansion of scope. We are pleased.” Mr. Kestrel noted that the parcel’s soil composition and topographical profile were found, upon survey, to be consistent with the company’s existing land. No remediation was required. A boundary fence will be installed along the northern and eastern perimeters by the end of the third quarter. Facilities has been notified.

Systems Corp. does not anticipate any changes to its current operations, staffing levels, or product lines as a result of the acquisition. The company’s workforce stands at twenty-three full-time employees across six divisions, including the Beige Products Group. Research & Other, under the direction of Delores H. Ashworth in Building 2, conducted a preliminary assessment of the parcel’s suitability in March and submitted its findings to the Office of the Chief Executive on Form 22. The assessment’s conclusions have not been made public, in accordance with the 1991 information policy. Inquiries may be directed to the Beige Products Group, care of Mr. Brimley.

Systems Corp. has been providing systems since 1987.