Saratoga Partners, New York-based private-equity investment firm and owner of Sericol, has decided to sell the specialty printing inks business to Fuji Photo Film in a transaction valued at approximately US$230m. Saratoga acquired Sericol in February 2003 from BP subsidiary Burmah Castrol. Sericol is a well-recognised player in the production and sale of premium inks and other consumables for screen, narrow web and digital printing and also provides comprehensive technical and advisory services.
Sericol generated revenues of approximately US$260m in 2004, representing a compound rate of growth in the double digits during each of the two years of Saratoga’s ownership.
Christian Oberbeck, Saratoga Partners managing director, says Sericol had been a very good investment for the firm.
"Sericol had a leading market position in screen printing inks when we acquired it, and thanks to a strong and experienced management team, it has expanded its leadership position,” says Oberbeck.
“We encouraged management to focus aggressively on the expanding market for digital inks, a move that is transforming the company and has made it an attractive strategic acquisition. The company’s new relationship with Fujifilm and Fujifilm’s global resources and technical expertise will only enhance its prospects for future growth."
Damon Ball, also a Saratoga managing director, says that Saratoga had worked closely with management to take a number of important steps to improve the company and increase its profitability. These included developing outsourcing initiatives, improved management information systems, changes in distribution strategy and more efficient manufacturing methods.
With Saratoga’s assistance, management had significantly improved Sericol’s cash management and financial planning disciplines.
Ball says that Fujifilm planned to operate Sericol as one of the key business units within its printing business and that its current management group, including chief executive Ed Carhart, would remain in place. The transaction is expected to close in late February.
