CVC Capital Partners acquires BASF Printing Systems and ANI Printing Inks
- Operations given new prospects for a world-wide focus
- BASF Printing Systems and ANI will be merged
- New corporation with annual sales in excess of EUR 830 million, headquartered in Stuttgart/Germany
Sept. 30, 2004. Funds managed by CVC Capital Partners (CVC), a leading European private equity firm, today acquired the printing inks and printing plates operations of BASF, which consist mainly of BASF Drucksysteme GmbH and other printing system companies. The sale covers all the BASF printing system facilities and activities, including pigment production at the BASF Colorants & Chemicals Co. Ltd. in Shanghai as well as the production of alkali blue at the BASF Corporation’s plant in Huntington, West Virginia. Both parties to the contract agreed to keep the details of the transaction confidential. The transaction is subject to regulatory approval.
The sale by BASF should enable the printing system business to emerge as a leading international supplier in the industry. The first step towards this goal will be the merger with the Swedish printing inks manufacturer ANI Printing Inks (ANI) under the CVC umbrella. ANI has likewise been acquired by CVC funds with effect from today. Both its product portfolio and its regional coverage are very complementary to BASF’s printing inks operations. The merged business will be headquartered in Stuttgart, Germany. The takeover of ANI as well as the subsequent merger of the two corporations are subject to regulatory approval.
BASF has been active in the printing plate business since 1965. In 1970, with the acquisition of K+E, which was headquartered in Stuttgart/Germany, BASF, started its own printing inks business. BASF Printing Systems was founded in 1997. BASF Printing Systems’ operations have always been largely stand-alone within the BASF.
Group. In the course of recent years, in particular, printing plate technology has increasingly diverged from the chemicals business.
Dr. Christian Wildmoser, Managing Director of CVC, commented: “We are making a decisive contribution to consolidation in a fragmented industry by merging BASF Printing Systems and ANI. As a result of the acquisition, BASF Printing Systems will become a core business and the merger with ANI will ensure that in the future a leading printing systems business will not only be able to maintain its market position, but expand it further.”
Dr. Wolfgang Büchele, as Director of BASF’s Performance Chemicals division also in charge of the BASF Printing Systems business states: “Our printing systems were successful and made a decidedly positive contribution to profits. The entire European industry is currently in a state of upheaval, making it necessary to give the business a more strongly global thrust. By spinning the printing business off, we are endeavoring to give it new prospects to further expand its activities world-wide.”
Dr. Michael Stumpp, Head of BASF Printing Systems, commented: “With the merger of the two companies we significantly increase our appeal to clients. Our position will be strengthened in a highly competitive market and we will be better able to exploit the opportunities that arise in an increasingly globalised market.”
Peter Koivula, CEO of ANI Printing Inks, in Trelleborg/Sweden states: “The merger is in line with the consolidation plan which ANI announced back at the end of 2001 in the context of the MBO. Through this combination of two well known ink suppliers we not only create a leading European company that can service the demanding expectations of our customers, but also a global supplier of complete printing system solutions that can offer better products and services for the graphics and packaging industry.
BASF Printing Systems
The BASF Printing Systems employs 2,600 staff members world-wide, over 2,000 of them in Europe and about 700 in Germany. The business comprises 16 companies in Europe, the United States, South America and Asia, including 20 sites. In 2003, the Printing Systems segment posted sales in excess of EUR 600 million and reported an operating profit. Further information on BASF Printing Systems is available on the Internet at www.basf-printingsystems.com
BASF Aktiengesellschaft
BASF is the world’s leading chemical company. Our goal is to grow profitably and further increase the value of our company. We help our customers to be more successful through intelligent system solutions and high-quality products. BASF’s portfolio ranges from chemicals, plastics, performance products, agricultural products and fine chemicals to crude oil and natural gas. Through new technologies we can tap into additional market opportunities. We conduct our business in accordance with the principles of sustainable development. In 2003, BASF had sales of more than EUR 33 billion and over 87,000 employees worldwide. BASF shares are traded on the stock exchanges in Frankfurt (BAS), London (BFA), New York (BF), Paris (BA) and Zurich (AN). Further information on BASF is available on the Internet at www.basf.com
CVC Capital Partners
CVC Capital Partners is a leading independent private equity provider in the UK and Continental Europe, specialising in large scale leveraged buy-outs. Founded in 1981 as Citicorp’s European private equity arm, in 1993 CVC completed its own management buy-out and is independently owned by its management. CVC closed its most recent European fund of USD 4.0 billion in 2001 and currently has total funds under management of over USD 9 billion. CVC has 12 offices in Europe. Since 1981, CVC has acquired over 235 companies for a total consideration of more than EUR 43 billion. CVC’s current European portfolio of 54 companies has a combined transaction size of EUR 32 billion, with a combined turnover of EUR 30 billion, operating in 25 countries and employing over 230,000 people. In February 2000, CVC established a US$750 million Asia Pacific investment fund. CVC now has offices throughout the Asia Pacific region and in 2003 was awarded Buyout House of the Year in Asia. The Asian portfolio currently comprises 12 companies. Further information on CVC is available in the Internet at www.cvceurope.com
ANI Printing Inks
The ANI Printing Inks Group develops, produces and markets printing inks and additives for the graphics and packaging industry. The company has fully owned subsidiaries in most European countries as well as Russia, China, South Africa, Brazil, Morocco, Malaysia, Thailand and the USA. A wide network of distributors covers another 40 countries. The ANI group, which is headquartered in Trelleborg/Sweden, employs 960 people worldwide and had sales in 2003 of EUR 231 million. The business was originally part of Akzo Nobel Coatings from which it was spun-off at the end of 2001. It became an independent privately owned company through a Management Buy-out (MBO) which took effect on Feb 01, 2002. Further information on ANI is available in the Internet under www.aninks.com
