X-Rite, Inc. has entered into a definitive agreement to purchase Pantone, Inc. for $180 million. The deal is expected to close in the fall of 2007.
Pantone, Inc., headquartered in Carlstadt, NJ, is an authority on color inspiration for the design world with the Pantone Matching System. Pantone generated revenue of approximately $42 million in 2006 with adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of approximately 27 percent of revenue. Pantone sells its products, services and technology directly and through hundreds of licensees in more than 100 countries in the graphic arts, fashion, home, interior, plastics, architectural, paint, industrial design and consumer markets.
“Larry Herbert and his team have built Pantone into a very successful business and we are delighted that it will now be part of the X-Rite family,” said Tom Vacchiano, CEO of X-Rite. “This iconic brand is the perfect complement to X-Rite’s business bringing Pantone’s expertise and market position in color communication and standards to our color solutions product offerings. We believe that this strategic acquisition will provide value for our shareholders, customers, employees and partners.”
“Pantone and X-Rite have enjoyed a strategic partnership in providing color management solutions for the digital imaging market for the last two years,” said Larry Herbert, CEO of Pantone. “Our company is wholly committed to color communication and inspiration and we are enthusiastic about combining our growing business with X-Rite to apply even greater resources to this work.”
Pantone will become a new business unit within X-Rite. Current Pantone leaders will continue to play key roles in the organization.