X-Rite, a US manufacturer of systems to measure, formulate, match, and simulate color, has announced that it will acquire Pantone for $180 million. Pantone, headquartered in Carlstadt NJ, USA, is known worldwide as the creator of the Pantone Matching System for identifying, matching and communicating colors to solve reproduction issues in graphic arts. Pantone will become a new business unit within X-Rite.
Pantone has expanded its color matching system to other industries where accurate color reproductions are critical, including digital technology, fashion, home, plastics, architecture and contract interiors, and paint. Pantone generated revenue of approximately $42 million in 2006 with adjusted EBITDA of approximately 27 percent of revenue. Pantone sells its products, services and technology directly and through hundreds of licensees in over 100 countries in the graphic arts, fashion, home, interior, plastics, architectural, paint, industrial design, and consumer markets.
“Pantone and X-Rite have enjoyed a strategic partnership in providing color management solutions for the digital imaging market for the last two years,” says Larry Herbert, chief executive officer of Pantone. “Our company is wholly committed to color communication and inspiration and we are enthusiastic about combining our growing business with X-Rite to apply even greater resources to this work.”
“Larry Herbert and his team have built Pantone into a very successful business, and we are delighted that it will now be part of the X-Rite family,” says Tom Vacchiano, chief executive officer of X-Rite, based in Grand Rapids, MI, USA. “This iconic brand is the perfect complement to X-Rite’s business, bringing Pantone’s expertise and market position in color communication and standards to our color solutions product offerings. We believe that this strategic acquisition will provide value for our shareholders, customers, employees and partners, and we are confident that we can successfully blend the Pantone integration with our existing responsibilities as we evolve into a faster growing, more diverse business.”