June 2, 2015
The Recycler reported yesterday that an announcement was to be made confirming a Chinese investor would acquire the Cartridge World global operation, with Suzhou Goldengreen Technologies (SGT) now revealed as the company in question. The company is based in Suzhou, near Shanghai in China, and is “supported by government science and technology funds and hi-tech venture capital”.
SGT also claims that it has “self-designed and set up several high-volume mass production lines in recent years”, and has “become the largest local OPC manufacturer in mainland China”. Previous majority shareholder Wolseley Private Equity sought to exit the franchise, having acquired a 70 percent stake in the global Cartridge World franchise in August 2007 for a rumoured AU$60 million ($45.9 million/€42 million).
The Australian investment company had plans to grow the revenues to AU$800 million ($612 million/€561 million) and increase the store portfolio to 4,000 stores in three years, at which point it would look to exit the investment. Today there are approximately 1,400 stores, down from a peak of 1,800 stores, with Cartridge World Germany rumoured to be the best performing part of the global franchise.
Cartridge World’s Global Chairman and CEO Rod Young wrote to franchisees last month stating that the current shareholders would be selling their investment in the cartridge franchise. The letter, seen by The Recycler, was entitled ‘Developments at Cartridge World’, and stated that in late 2014 the Cartridge World (CW) board of directors “decided that during 2015 the timing would be right for the current shareholders to sell their investment in the company”. This will enable the company to “recapitalise and have a new ownership structure established”.
There was said to be “a desire from all interested parties to keep the existing management in place and importantly, support and contribute to the key initiatives outlined in the CW Vision Statement conveyed to the network earlier this year”. Young went on to say that “we have carefully evaluated these offers to determine which offer would best ‘fit’ and contribute most value to the CW business and its franchise network while meeting the commercial expectations of the existing shareholders”.
Categories : World Focus