Flint Ink, XSYS and CVC create major global player in the inks industry

Guy
20 July 2005

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American-owned Flint Ink Corporation and XSYS Print Solutions have agreed to merge. The merged group will rank among the largest ink companies in every region it serves, with an employee base of 8,000 and combined revenues of approximately EUR 2.1 bn, based on 2004 figures.

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.

Completion of the transaction remains subject to approval, where necessary, by regulatory and competition authorities, but subject to receiving such approvals, 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.

Dave Frescoln, currently chief executive officer of Flint Ink, will become CEO of the new group. Peter Koivula, CEO of XSYS, 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, led the deal on behalf of the investor.

Banc of America Securities advised Flint Ink on the transactions. Goldman Sachs and JP Morgan advised XSYS. The debt facilities to support the merger of the combined group have been arranged by CIBC World Markets and JP Morgan as Joint Mandated Lead Arrangers and Bookrunners. Shearman & Sterling represented Flint Ink, Sullivan & Cromwell and Clifford Chance represented Xsys and CVC, White & Case acted for the Schmidt/Kalden families.