Flint Ink and Druckfarben Gebruder Schmidt GmbH to merge. (Fresh Ink).
The two companies will merge their European operations, while Flint Ink will acquire Gebr. Schmidt's operations in Canada. The agreement was signed April 5 and announced by the leadership of the two companies during a press conference April 9 at IPEX in Birmingham, U.K. The transaction is expected to close in May after completion of necessary regulatory approvals.
The merged group will become one of the three largest ink companies in Europe, with revenues of approximately [euro]450 million and 1,500 employees. The combined business will be named Flint-Schmidt GmbH & Co. KG, based in Frankfurt/Main, Germany.
Founded in 1878, Gebr. Schmidt is a privately owned ink manufacturer based in Frankfurt/Main, with a very strong presence in the publication ink market and substantial sales in the packaging and commercial sheetfed segments in Europe. The company has a strong position in Germany, France, Italy, Switzerland, Austria and the Iberian Peninsula. In addition, they have a significant presence in Eastern Europe and Canada.
Jim Mahony, president of Flint Ink Europe, will become chief executive officer of Flint-Schmidt GmbH & Co. KG, responsible for the overall direction and integration of the company, while Dr. Helmut Schmidt will become chief operating officer of the combined organization. He is managing director and a principal shareholder of Gebr. Schmidt GmbH.
"Germany is a critical part of the European market," said Mr. Mahony. "This agreement wilt strengthen Flint Ink's penetration into Europe in keeping with our global growth objectives. It will make us more attractive to our global customers, and it will also provide greater leverage in the eastern European market, where there is considerable opportunity for growth."
"This is an excellent opportunity to strengthen our position as a leading European ink manufacturer," added Dr. Schmidt. "We believe that access to the resources and worldwide network of Flint Ink Corporation will be advantageous to our customers."
"The fact that both companies have evolved under family ownership suggests some cultural similarities and synergies that can be utilized to create a wider spectrum of products and services," said H. Howard Flint II, chairman and CEO of Flint Ink.
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|Date:||May 1, 2002|
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