May 8, 2015
The Recycler reported yesterday on Reuters’ announcement that Static Control Components has been sold to Apex in a $63 million (€56 million) cash deal.
One supplier noted that they were concerned they would lose their business to Apex, while an EU customer noted that the deal “will certainly benefit Ninestar in the ongoing lawsuits from HP. It’s a big door of opportunities for them”. Another industry individual commented in detail, stating: “What surprises me most is the fact that this deal was a real secret and no rumour has been in the air. There have been, in the last 12 months, many rumours that Static Control would buy one or another European company, but not even the smallest rumour of Static Control to be sold to somebody.
“Congratulations to the persons behind that deal. We all in the industry have to be very careful how this giant will act in the market. An interesting question could be: who will be next?” One representative stated that “it’s very bad news for the whole industry. OEMs will enjoy this as they will have less enemies”, while another said that they were “surprised by the low value”.
Another person commented: “The first and only thought is the confirmation that “money don’t smell”… the biggest promoter/defender/supplier of the remanufacturing industry worldwide throws away, for few dollars, its own credibility and reputation gained in decades. I can’t imagine the feeling of Static Control’s sales people after learning [of] such [a] move.
“How do they now face their customers (local remanufacturers) who strive to keep their business alive against the compatible/clone cartridge manufacturers? Static Control must have been in a very bad shape to get to this point.”
Other views from the industry included:
- “They held seminars and various presentations together with OEMs sharing the stage promoting a common message together against clones, not so long ago”;
- “It will be interesting to see how Chinese leadership will go down in North Carolina”;
- “I’m also really pleased about the deal done. I think that in the future we need to work together and form strong trusted partnerships in order to ‘take our industry back’. It will be interesting to see in the future who else decides to pull together with who????”;
- “The same day Apex settles with HP!”;
- “Wow! Apex is a specialist in buying companies, taking them apart and reselling the bits and pieces – still, shocking news. Except for shareholders and owners”;
- “Unbelievable. I remember “it’s our industry, let’s take it back”. An industry full of lies and clones”;
- “Interesting news, but I am thinking about the outcome… I am not sure who will benefit […] plenty of lies and I will not be surprised if other deals like this will happen in the near future”;
- “Difficult market in difficult times. Kind of ‘take the money and run’, ain’t it?”.
Chinese remanufacturer Print-Rite released the following statement: “Print-Rite is glad to see this kind of consolidation happening as a result of the strong stock market funding from mainland China. We hope our industry will be seen as more legitimate through this kind of merger and acquisition. Many people have asked when Print-Rite will go public.
“While we do not have plans at this moment, there are many negotiations undergoing. Print-Rite believes we have the highest value within the industry, not just because we have more than 34 years of history but because we have more than 2,400 patents on hand whose values are not yet reflected.
“We believe that to ensure long term success, companies need to honestly do business by respecting intellectual property, having a strong mind-set towards innovation, and positively contributing to society, employees, business partners and shareholders. Print-Rite will, as always, continue with these core values and deliver them to our business partners.”
What’s your point of view on the deal? Let us know in the comments below or at firstname.lastname@example.org.
Categories : World Focus