X-Rite Inc. on Tuesday announced plans to acquire
Amazys Holding AG, the parent company of GretagMacbeth. The two organizations provide color management technologies to the graphic arts and printing industries. X-Rite will purchase all outstanding shares Amazys for $280 million. The transaction is expected to close in late Spring, subject to shareholder and regulatory approval.
X-Rite anticipates incurring about $20 million in restructuring costs during the first year, but anticipates seeing $25 million in annual operating expense savings by year three, with 63 percent combined gross margins. X-Rite expects to make money on the deal starting in the second year.
Following the deal, X-Rite’s Michael C. Ferrara will retain his post as CEO. Amazys CEO thomas J. Vacchiano Jr. will be President and COO. The Board of Directors will be made up of six current directors of X-Rite and three current directors of Amazys.
For the short term, both companies plan to operate separately. The companies plan to review their brand strategy and product lines as integration continues. Global headquarters will be located in Grandville, Mich. with European headquarters in Regensdorf, Switzerland.