Flint's Merger Provides Critical Size To Compete

The acquisition of US-based Flint Ink Corporation by Germany's XSYS Print Solutions was completed on September 30.

The acquisition of US-based Flint Ink Corporation by Germany's XSYS Print Solutions was completed on September 30.

The transaction closed following the August approval of the acquisition and subsequent merger by regulatory authorities in Europe and the USA.

The merger will lead to creation of a stronger, global supplier to the graphics and packaging industries with revenues of about US$2.6 billion (EUR2.1 billion), based on 2004 results.

The new entity will have approximately 8,000 employees in 160 sites in 35 countries and it will rank as the number one or number two supplier in every major region it serves.

XSYS Print Solutions was formed at the end of 2004 through the merger of BASF Printing Systems and ANI Printing Inks, following their respective acquisitions by funds advised by CVC Capital Partners (CVC), a leading independent private equity firm.

Founded in Detroit in 1920 by the Flint family, Flint Ink was previously the world's largest privately-owned ink manufacturer.

Flint-Schmidt, the company's European group, was created by the merger of Flint Ink Europe and Druckfarbenfabrik Gebr Schmidt in 2002.

The Flint Ink-XSYS merger includes all facilities and activities of the two businesses, including inks for publication, packaging, news, commercial and narrow web applications, as well as printing plates, pigments, dispersions and resins, together with digital and other emerging business units.

An integration team representing both companies will ensure that the integration process, which has already started, is completed as soon as possible, said Flint.

The process of finding a new name for the combined company is underway.

Dave Frescoln, chief executive officer of Flint Ink, who has been named CEO of the combined company, commented on the future of the new organisation: "The printing ink industry has remained fragmented at a time when our customers have expanded geographically to increase market reach whilst consolidating production to strengthen their market positions." He continued: "Having the necessary size and reach to meet the demands of these global customers is absolutely critical if we are to remain a strong competitor in the future.

By realising the synergies of complementary product portfolios, regional representation, unsurpassed technical talent and a strong management team, the new company is well positioned to meet the continuing challenges of customer demands in a rapidly changing, worldwide market place." In addition to Dave Frescoln, Howard Poulson, non-executive chairman of XSYS, will serve in the same role on the new board of directors.

Peter Koivula, previously CEO of XSYS Print Solutions, will become vice chairman with special responsibilities for strategic matters and for relationships with major customers at a senior level.

Mike Gannon, chief financial officer of Flint Ink, will be chief operating officer of the new company, whilst Mike Bissell, will be executive financial officer.

The following leadership positions have been announced for the five regional operating groups: Dr Helmut Schmidt in Europe, Bill Miller in North America, Jerko Rendic in Latin America, Damian Johnson in India and the Pacific, and Henry Leong in Asia.

In addition, four global business units will be led by Dr Thomas Telser, printing plates; Ewald Draaijer, narrow web inks; Dr Frank Scherhag, pigments and resins and Dr Kenneth Stack, Jetrion LLC (digital inks, equipment and integration).

Other new operating leadership appointments include Craig Foster, vice president and general manager of the global pigment and resins group; Dr Dirk Aulbert, general manager of the sheetfed division Europe; Doug Aldred, general manager of the liquid packaging division Europe and Wolfgang Blumschein, general manager of the publication division Europe (heatset and publication gravure).

In addition, Tony Lord will be general manager of the coldset division Europe, whilst Dr Roland Rusch will become deputy general manager of the coldset division Europe and Dr Stefan Wegener is to be the vice president of operations Europe, responsible for the integration, for QHSE (quality, health, safety and environment) as well as for CIP (continuous improvement processes).

Divisional assignments within North America, Latin America, India and Pacific and Asia will remain unchanged.

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