Lehman Brothers Collection - Contemporary Business Archives

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Lehman Brothers Collection

Twentieth-Century Business Archives

Automatic Data Processing, Inc. Deal - Lehman Brothers Collection

Automatic Data Processing, Inc.

Company Deal230,000 shares of common stock (par value $.10 per share); listing of 1,591,446 shares of common stock (par value $.10 per share) on the American Stock Exchange
Transaction TypeCommon Stock
Deal DescriptionAutomatic Data Processing, Inc., sold 100,000 of the 230,000 shares offered to the underwriters, and 130,000 were acquired by the underwriters from the selling stockholders. The selling stockholders group consisted of Henry Taub, Joseph Taub, Frank Lautenberg, Joseph Rosen, Naftali Rosenkranz, and Robert Roth. The company did not receive any part of the proceeds of the sale of the 130,000 shares being acquired from the selling stockholders. The net proceeds to be received by the company from the sale of the 100,000 shares were estimated at $3,238,044. Of such proceeds, the company anticipated using $450,000 to retire short-term bank loans and $290,000 to pay the balance of the purchase price of undeveloped real estate in Clifton, New Jersey, upon which the company expected to erect a new corporate headquarters and computer center. Any additional proceeds were to be used for general corporate purposes, including interim payments for construction of the new corporate headquarters and computer center, as well as providing additional capital for use in connection with the company's acquisition program. Under its acquisition program, the company purchased all the stock of B.P.C. Brokerage Processing Center Inc.; the company also acquired the Independent Companies.
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