EFI, a public company that produces inkjet systems and print management products, has announced its intention to acquire privately held Jetrion LLC, a subsidiary of Flint Group Incorporated, for approximately $40 million in cash. Jetrion manufactures inkjet printers, inks and custom printing systems for the label and packaging industries. EFI expects the transaction to close in the fourth quarter of 2006, subject to certain closing conditions.
“Jetrion’s advanced technology and very talented team are great additions to our inkjet business, and are a key element in fulfilling our strategy to expand our presence in the industrial inkjet market,” says Guy Gecht, EFI’s CEO. “We are impressed with Jetrion’s packaging and label printing expertise, and we see this as an emerging market opportunity for digital printing given the increasing demand for short runs, variable content and fast turnaround in these segments.”
“We are excited to join the EFI team and be able to leverage its global reputation, vast industry relationships and financial strength to gain greater market reach, and provide our valued customers with an even higher quality of service,” says Kenneth Stack, president of Jetrion.
The acquisition is expected to add between $3 million and $5 million in revenues to EFI’s fourth quarter results with an immaterial impact on pro forma earnings. For the full year 2006, Jetrion is expected to post revenues of approximately $16 million to $18 million. The Jetrion products are currently anticipated to show top line growth of 30-40 percent in 2007 and again have an immaterial impact to pro forma earnings as EFI makes investments to expand the Jetrion product line and distribution.
Jetrion is headquartered in Ypsilanti, MI, USA, and has about 50 employees. A wholly-owned subsidiary of Flint Group, Jetrion provides industrial inkjet systems, custom integration solutions and specialty inks to the converting, packaging and direct mail industries. The company recently announced plans for a full color UV inkjet label press.
EFI, based in Foster City, CA, USA, markets digital controllers, superwide format printers and inks, and commercial and enterprise print management systems. The company’s product portfolio includes Fiery color print servers; UV and solvent inkjet inks; and print production workflow and management information software. EFI maintains 22 offices worldwide.