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The imaging supplies industry is currently navigating turbulent waters, and one key question arises: Will Ninestar soon divest Static Control? In a recent article on LinkedIn, Ray Stasieczko, Consultant, Speaker, and Host of End of the Day with Ray!, dives deep into this possibility, exploring the factors that could push Ninestar to part ways with its U.S.-based subsidiary.
Ninestar’s 2015 acquisition of Static Control was a major move to strengthen its presence in the global aftermarket space. However, as Ray Stasieczko points out in his article, the landscape has dramatically changed. With mounting geopolitical tensions, trade restrictions, and the lasting effects of being added to the U.S. Entity List, it’s becoming clear that the strategic value of Static Control to Ninestar is diminishing.
Ray’s analysis suggests that a divestiture could be the logical next step for Ninestar, as the regulatory hurdles surrounding its operations in North America make it increasingly difficult for Static Control to thrive under current ownership. Given the current challenges, it might be in Ninestar’s best interest to refocus its efforts on markets less impacted by U.S. sanctions.
Static Control’s established customer base, infrastructure, and brand recognition still hold value, and as Ray speculates, it’s entirely possible that a buyer with fewer regulatory constraints could seize the opportunity. For Ninestar, divesting this asset could provide the company with more flexibility moving forward.
Although no official announcements have been made, Ray’s article provides a compelling argument for why the divestiture of Static Control could be on the horizon. As the industry continues to evolve, one thing is clear: the next few months could be pivotal for both companies.
*Click here or photo below to go to Linkedin for Ray’s article*
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