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Transaction is the largest
in the history of the printing ink business.
Fort Lee, NJ - January 5, 2000 - Sun Chemical Corporation, a recognized innovator
in graphic arts technology and the manufacture of printing inks, announced
today that it had completed its previously announced acquisition of Totalfina's
Coates Lorilleux worldwide printing ink business. The transaction,
valued at FF 3.4 billion (nearly $550 million U.S.), is the largest in the
history of the printing ink industry and was closed on December 31, 1999.
Coates Lorilleux, operating
in 44 countries, reported 1998 worldwide sales of approximately FF 5 Billion
(more than $800 million U.S.). Estimates for 1999 put sales at approximately
FF 5.1 billion (approximately $ 822 million U.S.). For the year just ended,
Sun Chemical's worldwide sales were approximately
$ 2.6 billion U.S.
"Harmonization in
manufacturing and synergies in technology between the two organizations will
provide excellent opportunities for us to continue to improve our profitability
through greater economies of scale in purchasing raw materials and increased
productivity," said Henri Dyner, Sun Chemical President and CEO.
Over the next few years, Coates Lorilleux in Europe will continue to run as
a stand-alone business as far as sales, marketing, and customer technical
service. In the United States, the Coates operation will be a stand-alone
business in all respects, while in Latin America, the business will report
into Sun Chemical Latin America. Finally, as previously announced, the Coates
Lorilleux business in Asia will be managed by Sun Chemical's parent, Dainippon
Ink & Chemicals of Tokyo, Japan.
Coates Lorilleux is a
major producer of conventional printing inks, screen printing inks and electrography.
Sun Chemical will continue to operate the screen inks and electrography businesses
of Coates on a global basis, increasing the company's global presence, both
geographically and from a product range perspective. Mr. Dyner reiterated
that "the fit between Sun Chemical's printing ink business and Coates
Lorilleux's is exceptional because of the complementary nature of both organization's
products and markets. The combined company is truly a global printing ink
business in every aspect, creating additional opportunities for us to serve
our global customers even better through R&D synergies and a broader marketplace
presence."
Sun Chemical is a global
manufacturer of high quality printing inks and organic pigments. With headquarters
in Fort Lee, New Jersey, U.S.A.; Watford, UK; and Soest, the Netherlands,
the company owns and operates manufacturing, sales, service and technical
facilities throughout North America, Europe, Latin America
and the Caribbean.
The Sun Chemical family
of companies employs more than 14,000 people worldwide and includes such well
known names as Usher-Walker, Gibbon, Hartmann, Kohl & Madden, Heritage,
US Ink and Coates Lorilleux. Sun Chemical Corporation in the U.S. and Sun
Chemical Limited in the UK are subsidiaries of Sun Chemical Group B.V., the
Netherlands. In addition, Sun Chemical's joint venture with Eastman Kodak,
Kodak Polychrome Graphics, is a world leader in prepress products. For more
information about Sun Chemical, visit our web site at http://www.sunchemical.com. |
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