Goldman Sachs and Koch Equity Development LLC have bought up printing industry supplier Flint Group, a deal valuing the company at a heady $3 billion. The ink is barely dry on the paperwork and already the new owners are drawing up a takeover hit-list to grow the business.
Flint Group was formed in 2005 when former owners CVC Capital Partners bought Flint Ink and bolted it onto XSYS Print Solutions, which it had acquired one year earlier. Goldman Sachs and Koch Equity will pick up 100% of the company’s share capital from CVC Capital Partners, with the deal expected to be finalised by the second half of 2014. According to Antoine Fady (pictured), Flint Group CEO, the group is excited about the new ownership and will ensure the transition is seamless for customers, suppliers and employees alike.
“The investment by Goldman Sachs Merchant Banking and Koch is a clear vote of confidence in our vision, strategic plans, and ‘can do’ culture. Flint Group’s fundamental dedication to safety, sustainability, integrity and compliance will continue to form the foundation of all of our business activities,” said Fady.
Already the world’s second largest printing ink manufacturer, Flint Group is also a leading consumables supplier to the print and packaging industries. Under its new ownership, Flint Group looks set to pursue further growth in the fertile packaging market, with potential takeover targets already drawn up.
Martin Hintze, co-head of corporate equity investing, Goldman Sachs, says, "The acquisition of Flint Group fits well into our strategy of investing in leading global franchises and growing them organically and through acquisitions. We look forward to working in partnership with Koch Equity Development and Flint Group's strong management team to execute on their strategy."
Goldman Sachs and Koch Equity will pick up 100% of the company’s share capital from CVC Capital Partners, with the deal expected to be finalised by the second half of 2014. According to Antoine Fady, Flint Group CEO, the group is excited about the new ownership and will ensure the transition is seamless for customers, suppliers and employees alike.
“The investment by Goldman Sachs Merchant Banking and Koch is a clear vote of confidence in our vision, strategic plans, and ‘can do’ culture. Flint Group’s fundamental dedication to safety, sustainability, integrity and compliance will continue to form the foundation of all of our business activities,” said Fady.
Flint Group currently employs around 6600 people across 137 sites in 40 countries, pulling in annual sales of 2.2 billion. Reuters reports the deal will improve the company’s capital structure and reduce its debt, estimated at 1.8 billion, by as much as 20%.
Chris Wildmoser, of CVC Capital Partners, welcomes Flint Group’s new owners as a perfect fit for the business moving forward.
“For almost ten years, CVC has helped to build Flint Group through a series of acquisitions into the global leader it is today. We are pleased that, with Goldman Sachs and Koch Equity Development, we have found new owners who will continue to pursue this strategy in further developing the company,” said Wildmoser.
Brett Watson, managing directo, Koch Equity, says, “Flint Group is a global leader with a clear strategy and a management team that has a consistent track record of delivering results.”
Matthias Hieber, head of corporate equity investing, Goldman Sachs, adds that, “With a significantly improved capital structure, Flint Group is best positioned to pursue its ambitious growth plans to further strengthen its market leading position.”