USA owned Flint Ink and XSYS Print Solutions, based in Stuttgart, Germany, have agreed to merge. The merged ink producing group will have combined revenues of approximately US $2.6 billion (€ 2.1 billion).
Flint Ink is the largest privately-owned ink manufacturer in the world. XSYS Print Solutions was formed by the merger of BASF Printing Systems and ANI Printing Inks following their respective acquisitions at the end of 2004 by funds advised by CVC Capital Partners (CVC), a leading independent private equity firm.
Completion of the transaction remains subject to approval, where necessary, by regulatory and competition authorities, but it is expected to be finalized on or around 30th September 2005. The new company will be jointly owned by CVC funds and the management of both companies. Legal headquarters of the group will be in Luxembourg and it is understood that there is yet to be a decision on any new name with Flint Ink, Flint Schmidt and XSYS continuing to use their existing company names.
Dave Frescoln, currently ceo of Flint is to become ceo of the new group. Peter Koivula, XSYS ceo will become vice chairman of the new company, with special board responsibilities for strategic matters and the relationship with major customers at a senior level. Howard Poulson, non-executive chairman of XSYS, will assume the same function within the combined group.
Dr Christian Wildmoser, managing director of CVC, commented: "By building the second largest ink manufacturer in the world, Flint Ink, XSYS and CVC are creating a stronger competitor better placed to serve customers in a fragmented market, where size is of critical importance for the success of the business. We are continuing to globalise the businesses following the needs of our customers in the printing industry. The transaction will significantly strengthen the combined group's positions in each of its core inks segments.
"The two companies have a perfect regional fit with regard to operations in North America and Europe as well as a complementary product mix. Flint Ink's presence in Asia means that the merged entity will have a strong presence in the world's growth markets. The transaction puts the combined group in an excellent position to further drive growth to the benefit of customers, employees and shareholders."
| Telephone contacts |
| Flint Tel: +1.734.622.6362 XSYS Tel: +49 711 9816 230 |
