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Shades of success: X-Rite acquires Pantone

Wednesday, 29 August 2007
By Print 21 Online Article

The deal sees Pantone become a new business unit within X-Rite, which expects to incur cash restructuring costs of $5.5 million in the first year and $6.5 million of annual operating expense costs in year two.

Both companies blend well together, according to Tom Vacchiano, CEO of X-Rite. “Larry Herbert and his team have built Pantone into a very successful business and we are delighted that it will now be part of the X-Rite family,” he said.

“This iconic brand is the perfect complement to X-Rite’s business, bringing Pantone’s expertise and market position in colour communication and standards to our colour solutions product offerings. We believe that this strategic acquisition will provide value for our shareholders, customers, employees and partners.”

Ian Clare, managing director of DES, was unable to comment on the deal and whether Pantone would now be distributed any differently throughout Australia and New Zealand; but the purchase does give DES the full spectrum of colour-related products in the Transtasman.

This purchase is reflective of growing industry consolidation, according to Jim Summers, president of GMG and X-Rite partner. He told Whattheythink.com that it did not pose a threat to rivals, who are few and far between.

“This is another example of consolidation in our industry,” he said. “But it is an area where neither company has much in terms of competition, especially following X-Rite’s acquisition of Gretag. Kudos to Pantone. They are really the McDonald’s of colour specification.”

Expected to be complete by the end of this year, the acquisition will focus on developing X-Rite’s range of offerings, global presence and revenue base, along with achieving synergies in marketing, operations and administration for both companies.

Having previously worked together, Larry Herbert, CEO of Pantone, foresees a productive future for the two. “Pantone and X-Rite have enjoyed a strategic partnership in providing colour management solutions for the digital imaging market for the last two years,” he said.

“Our company is wholly committed to colour communication and inspiration and we are enthusiastic about combining our growing business with X-Rite to apply even greater resources to this work.”

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