The Huber Group has agreed to form an alliance with Micro Inks Ltd. The transaction is expected to be completed by early 2006. Once this transaction is completed, the Huber Group will have consolidated annual sales of $900 million.
The Huber Group has acquired a majority stake between 50.5% and up to 59.06% in Micro Inks. The Bilakhia Group will continue to hold a minority interest in Micro Inks. The Huber Group will also launch the obligatory tender offer to acquire up to 20% of the shares of Micro Inks.
The Huber Group, presently the sixth-largest ink manufacturer in the world, holds particularly strong market positions in Europe and North America, and has 29 member companies servicing printing customers in almost 200 countries worldwide.
Micro Inks Ltd., the 14th-largest international ink manufacturer, is particularly strong in India and North America. Micro Inks manufactures inks for all printing processes with backward integration in pigments, flushes and resins which are vital components for the manufacturing of printing inks.
The acquisition of Micro Inks Ltd. will make the Huber Group market leader in India and provide improved access to other fast-growing print markets in Asia. The company will gain modern manufacturing operations with significant capacity reserves.
"This move will secure the future of the Huber Group from a long-term point of view and will enable us to enhance our offerings to the customers," said Heiner Ringer, managing director of the Huber Group. "We look forward to participate and utilize the excellent facilities and talent available in India."
"Micro has in a single move catapulted from its current position to be one of the global leaders," said Yunus Bilakhia, chairman of Micro Inks. "We as principal shareholders decided in favor of this alliance after careful consideration of cultural aspects, integration and the inherent risks which Micro faced in a rapidly consolidating printing inks business. Our stated goal of professionalizing all our businesses is met and we will continue to actively support this new global entity at the board and shareholders levels."
The Huber Group intends to continue operating all presently existing manufacturing facilities in Europe, North America and India. The additional facilities and production capacities will further improve the company’s ability to provide top quality ink products in any volume at competitive prices anywhere in the world.