A European printing and graphic arts supplier has a deal in place to purchase Day International Group Inc. to complement and bolster its product lines.
The Flint Group, based in Luxembourg, signed an agreement in principle April 20 to acquire Day, which specializes in printing blankets and sleeves, image transfer media and pressroom chemicals. The sale is expected to close in 30 to 60 days, pending regulatory approval.
Under the transaction's terms, Dayton, Ohio-based Day will operate as a stand-alone Flint business unit. CEO Dennis Wolters will remain as head of the company's operations, and there are no current plans for any streamlining or changes in operations or personnel, said Thomas J. Koenig, Day vice president and chief financial officer.
While the financial terms of the deal weren't disclosed, the two companies said the combined estimated revenues for 2007 will be about $3.32 billion. Flint posted 2006 sales of $2.73 billion; Day reported net earnings of $23.6 million on sales of $348.1 million, according to its 2006 10-K filing with the Security and Exchange Commission.
The sale allows Day to align its business with a large company within the same industry that understands the market dynamic, Koenig said. Day didn't consider Flint a competitor because the two firms sold primarily complementary products.
The transaction also gives the firms opportunities to ``leverage our distribution chains to increase both companies' product lines,'' Koenig said.
Flint Group CEO Dave Frescoln said that via the combination of those complementary lines, ``we are creating a stronger supplier with a significantly broader range of products for our customers around the world.'' Day's image transfer technologies also will provide a strong avenue to market for the company's products, he said, in both conventional and digital printing.
Wolters added that the expanded organization will be in a strong competitive position in the best sense, allowing customers to meet the bulk of their pressroom needs from a ``single, trusted resource.''
Day's sale to Flint is the latest chapter in its long history dating back to 1905, when it was founded in Dayton, Ohio, as the Dayton Rubber Co. Over the years, it produced tires, rubber hoses and belts, rollers, some plastic products and-beginning in 1945-offset printing blankets.
The firm was renamed the Dayton Tire & Rubber Co. in 1910, and in 1960 the moniker was changed to Dayco Corp. The company took its first step toward exiting traditional rubber production by selling its automotive tire business to the Firestone Tire & Rubber Co.
In 1986, the company sold its hose and belt business, along with the Dayco name, becoming Day International. The next year, M.A. Hanna Co. acquired Day and owned it for the next eight years.
In recent years, Day has made several acquisitions and sold off some noncore businesses, including its Textile Products Group in June to Saurer A.G. for $48.8 million. The majority of Day's rubber production today goes into its printing blankets and sleeve products, which make up more than 60 percent of the company's overall sales, Koenig said. The company employs about 1,300 people worldwide and operates 35 sites in 17 countries, he said.
Combined, Flint and Day will employ nearly 8,300 people and operate from 170 sales, service and manufacturing sites on five continents, and will rank among the largest pressroom consumable suppliers in every region it serves, Flint said.