Sun sells blanket business to Day International
Sun Chemical, the world’s largest manufacturer of printing inks and organic pigments, announce yesterday the sale of certain assets of its Sun Graphic press blankets business to Day International. The asset purchase is subject to the satisfaction of the customary closing conditions and is expected to be effective August 31, 2006. The two companies will also enter into a distribution agreement for the sale of Sun Graphic blankets.
“After careful examination of business conditions, we concluded it would be best to divest this smaller portion of our business,” says Mark J. Levin, President, Sun Chemical North American Commercial Group.
“However, we were eager to find a partner like Day International that we could continue to work with to supply a total printing solution to our commercial printing customers. Day has agreed to continue to supply Sun Graphic blankets to Sun Chemical for the commercial sheet fed, packaging, coldset web (single width) markets.”
“Sun Chemical will close the Sun Graphic blanket manufacturing facility in Pompano Beach, Florida, effective August 31, 2006. That decision was made due to anticipated high investment costs necessary to meet regulations and boost operational efficiency,” Levin says.
Dennis Wolters, president of Day International, says, “Even though Sun Chemical will close its blanket facility, this transaction will ensure Sun Graphic customers a long-term supply of Sun Graphic blankets. The combination of the Sun Graphic technology, Day’s manufacturing capability, and Sun and Day’s distribution and service network will provide the customers with a continuing high level of quality, availability, and customer service.”
To help ensure continuity of product quality and supply, Day will begin manufacturing Sun Graphic blankets in its own facilities prior to closing. Sun Chemical acquired Sun Graphic in 2004 as part of its purchase of press chemistry manufacturer Rycoline, which remains a member of the Sun Chemical North American Commercial Group.
The acquisition by Day International follows the sale of its Kompac Division’s assets, both in the United States and Germany, on May 31 this year to a management team lead by Tom Hayes, Kompac’s general manager.
Day’s President and CEO, Dennis Wolters, says of the Komopac transaction, that it "allows Day to continue focusing efforts on our primary business of consumables and value added products for the graphic arts industry, while providing an opportunity for Tom and his management team to continue to manufacture and globally distribute Kompac’s traditional automatic dampening systems and related products and to broaden Kompac’s product offering."
As part of the sale agreement, Day agreed to provide certain transitional support to the Kompac Division in order to ensure a smooth change in ownership.
