August 18, 2016
Reuters reported that the company, which is the “world’s largest collector and recycler of cellphones and empty printer cartridges”, is “exploring a sale” worth roughly $1.5 billion including debt, according to “people familiar with the matter”. The site added that the sale reports come as Clover “has been seeking to expand its handset business, betting that more consumers will trade in old phones when they upgrade to the latest model”.
It also reported that Golden Gate Capital, the private equity firm that bought 48 percent of the company in 2010 as well as West Point Products, has hired Morgan Stanley, the investment bank, to “help run an auction for the company”, though sources pointed out that “no deal was certain”, and asked not to be identified “because the sale process is confidential”. In addition, Clover, Morgan Stanley and Golden Gate Capital all “declined to comment” to Reuters.
In turn, the news site outlined that “companies in the broader printing industry have struggled, as corporate clients slash costs and consumers shift to mobile devices from personal computers”, citing this year’s news that Apex and Lexmark have agreed an acquisition deal as evidence of the decline.
Clover announced a strategic merger with fellow cartridge remanufacturer MSE in 2014, and previously acquired TRS Group, Dematec, OPRA, Pinpoint LLC, Depot America and ERS. It also purchased a mobile phone recycling business in 2012, followed by a telecom equipment recycler in 2013, and The Recycler reported in late 2014 that the company was set to hit $1.1 billion (€970.9 million) in revenue.
In March last year, the cartridge recycling and remanufacturing arm of the company rebranded as Clover Imaging Group, and Reuters pointed out that the company – founded in 1996 – has over 60 “manufacturing, collection and sales locations across 19 countries”. Other companies acquired globally by Clover Technologies include Saaker Printing Design and Engineering in India, LaserCare in Singapore and US-based American Communications.
Categories : World Focus