Flint Ink to take over Manders?

Citation

Bean, J. (1998), "Flint Ink to take over Manders?", Pigment & Resin Technology, Vol. 27 No. 2. https://doi.org/10.1108/prt.1998.12927baa.001

Flint Ink to take over Manders?

Flint Ink to take over Manders?

At the turn of the year came the surprise news that the board of Manders plc had agreed terms for a recommended offer from Flint Ink Corporation at 250p a share, which valued Manders at £100 million. This price represented a premium of approximately 65 per cent over the closing middle market price of Manders' share on the day immediately prior to the announcement.

With this premium in mind it was perhaps understandable that the directors of Manders, members of their families and major shareholders had given irrevocable undertakings in respect of a total of 13,801,238 Manders shares, which represents approximately 35 per cent of the issued ordinary share capital.

Unless a counterbid comes in by the time this issue is published which is attractive to the holders of the remaining 65 per cent of the shares, then this surely means the end of the Manders' name. Since divesting itself of its industrial and decorative coatings at the beginning of this decade Manders has grown to be one of Europe's leading printing inks manufacturers, particularly in high quality flexo and gravure inks. Much of this growth came about by skilful acquisition, particularly in The Netherlands with its ultra-modern manufacturing plants, backed up by Manders' "Centre for Excellence" for solventbased flexo/gravure inks at Ruabon in the UK. Other acquisitions were in New Zealand and Australia.

Flint Ink is a leading US printing ink and pigment manufacturer and is acquiring Manders in order to give it a significant presence in the European ink market.

Flint Ink is a privately-owned manufacturer of inks and pigments for all major printing applications. It is the second largest ink producer in North America and the fifth largest in the world, operating over 70 manufacturing facilities and employing some 2,500 people across North and South America, South Africa and the Pacific Rim.

Founded in 1920 in Detroit, Michigan, USA, by H. Howard Flint, the corporation is owned by the Flint family and recorded revenues for the year ended 31 December 1996 of approximately $700 million.

Roy Amos, chairman of Manders, said: "We believe this is a good offer for shareholders. We have known Flint Ink for many years and we are enthusiastic about the combination, which will create a group with an enhanced ability to compete effectively on an international basis".