X-Rite to Acquire Amazys Holding AG
Agreement Will Create a Global Leader in the Color Industry.
Combination Expected to Lead to Enhanced Quality, Increased Scale, Greater Innovation and Improved Operational Efficiency.
GRANDVILLE, Mich. -- X-Rite Inc. (Nasdaq: XRIT) and Amazys Holding AG (SWX: AMSN), two providers of color measurement solutions have entered into an agreement under which X-Rite will offer to purchase all of the outstanding registered shares of Amazys Holding AG for approximately US$280 million or CHF 77 per share plus 2.11 shares of X-Rite Inc. stock per share.
Amazys develops, markets and supports hardware, software and services to measure and communicate color under the GretagMacbeth brand.
Anticipated Strategic, Operational and Financial Benefits of the Acquisition Include:
· Building one of the strongest talent pools in the industry
· Creating a global market leader in the color industry
· Leveraging the strength of X-Rite57;s manufacturing and the technology of Amazys Holding AG
· Generating significant synergy potential
· Accelerating technology innovation
· Extending market opportunity and geographic reach
The combined company expects to achieve approximately U.S. $25 million of annual operating expense savings in connection with the transaction in year three, with combined gross margins of approximately 63 percent. During the first year, the company has plans to incur restructuring costs of approximately U.S. $20 million. The transaction is expected to be accretive to X-Rite57's EPS during year two of the combined operations.
"X-Rite is excited about the opportunity to achieve greater scale, reduce operational costs and leverage combined R&D efforts," says Michael C. Ferrara, chief executive officer of X-Rite. "With the combined company, we will be in a position to deliver more innovative and high quality solutions. We believe this is a strategic combination that will provide value for our shareholders, customers, employees and partners."