X-Rite, Inc. has completed the purchase of Pantone, Inc. for a purchase price of $180 million. The transaction was funded exclusively with cash, financed through new borrowings.
Pantone, Inc., headquartered in Carlstadt, NJ, is the worldwide market leader in color communication and specification standards in the creative design industries. Pantone generated revenues of approximately $42 million in 2006 with adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of approximately 27 percent of revenues.
Anticipated strategic, operational and financial benefits of the acquisition include deepening X-Rite's range of offerings by adding color standards to its leadership position in hardware, software and services solutions.
"We are very excited to welcome Pantone into the X-Rite family,” said Tom Vacchiano, X-Rite's CEO. "We expect the combination of our two businesses to further strengthen X-Rite's position as the market's leading and most comprehensive color management solutions provider. The grouping of our broad technology platforms and standards and an expanded customer base should help us further several of our strategic objectives, including driving innovation and growth and further diversifying our business.”
Pantone will become a new business unit within X-Rite. Current Pantone leaders will continue to play key roles in the organization.