CLOVER TECH AND WEST POINT TAKE THE MONEY AND RUN……

[Anonymous]

http://www.opi.net/e_news/april_2010_news/clover__and__west_point_acquired_by_pe_firm?SQ_ACTION=login&
CLOVER TECH AND WEST POINT TAKE THE
MONEY AND RUN……
WHY
DID CLOVER & WEST POINT SELL A MAJOR STAKE OF THEIR BUSINESS TO A
PRIVATE EQUITY FIRM ?
April 2010 – San
Francisco (CA), USA Private equity firm Golden Gate Capital has acquired
a majority stake in aftermarket imaging supplies companies Clover
Technologies and West Point Products.The deal brings together two of the
leading North American aftermarket firms in the same portfolio.

Golden
Gate said that both companies will continue to operate independently in
their respective markets, but will work together to leverage potential
synergies in the future.Existing management of both organisations will
remain in place to support new growth strategies and senior management
of each company will remain large shareholders.

Jim Cerkleski,
CEO of Clover Holdings, commented on the acquisition: “We are excited
about partnering with Golden Gate because it opens up new opportunities
for global expansion both organically and through acquisitions. We will
continue to expand our collections programmes and remanufacturing
infrastructure as we diversify into new and emerging markets while
driving our ‘recapture, remanufacture, remarket’ strategy. This will
also allow us to accelerate the organic growth and acquisition strategy
of Image1 to be the number one parts provider globally.”

Clover
has annual sales of around $450 million and sells mainly through the
wholesale, distribution, national office products and retail channels.

West
Point Products is smaller, with revenues in the region of $65 million,
and is stronger in the mid-market. It also has its own managed print
services offering (Axess MPS), that Clover may tap into.“This
acquisition enables us to continue to grow organically and seek out new
acquisition opportunities, “ said West Point CEO Tom Day.“This
partnership will help us enhance our product and services offering to
further penetrate the mid-market.”

http://www.imagesourcemag.com/magnew/News_Story.asp?id=9135&type=news
Golden Gate Capital Acquires West
Point Products & Clover Technologies
San
Francisco, CA (April 2010) – Golden Gate Capital, a San Francisco-based
private equity ?rm, announced today the acquisitions of Clover
Technologies Group and West Point Products. These acquisitions advance
Golden Gate’s strategy to develop an aftermarket imaging supplies
portfolio. By starting their portfolio with the acquisition of two
industry leaders, it paves the way for Golden Gate to develop a
comprehensive, multi-channel platform positioned for rapid growth.

Clover
Technologies Group is the global leader in providing vertically
integrated, closed-loop environmental solutions, including therecycling
and remanufacturing of imaging supplies. Founded in 1996 and with annual
revenue of more than $450 million, Clover specializes in selling
through the wholesale, distribution, national o?ce products and retail
channels.

Jim Cerkleski, CEO of Clover Holdings, commented on the
acquisition, “We are excited about partnering with Golden Gate because
it opens up new opportunities for global expansion both organically and
through acquisitions. We will continue to expand our collections
programs and remanufacturing infrastructure as we diversify into new and
emerging markets while driving our ‘recapture, remanufacture, remarket’
strategy. This will also allow us to accelerate the organic growth and
acquisition strategy of Image1 to be the number one parts provider
globally.”

West Point Products is the leading imaging supplies
remanufacturer servicing the mid-market, focused on supporting dealers
targeting the SMB market. Founded in 1972 and with annual revenue of
more than $65 million, West Point Products provides best-in-class
managed print services (Axess MPS) to complement their product and
services portfolio.

Tom Day, CEO of West Point Products, said:
“This acquisition enables us to continue to grow organically and seek
out new acquisition opportunities. This partnership will help us enhance
our product and services o?ering to further penetrate the mid-market.”

Both
companies will continue to operate independently in their respective
markets but will work together to leverage potential synergies in the
future. This partnership will provide greater coverage and focus on each
market to ensure the best and highest quality product and support while
maximizing distribution capabilities for greater product availability.
The focus will remain on providing best-in-class support to customers
while ensuring the highest levels of service in the industry. Existing
management of both organizations will remain in place to support these
new growth strategies and senior management of each company will remain
large shareholders.

Jake Mizrahi, Golden Gate Managing Director,
said, “We enthusiastically welcome Clover and West Point as a part of
the broader Golden Gate portfolio and look forward to working with both
organizations to continue to help accelerate their growth strategies.
These strong platforms position us perfectly to pursue additional
opportunities in the imaging supplies and environmental space both in
the United States and abroad.”

About Golden Gate Capital
Golden
Gate Capital is a San Francisco-based private equity investment ?rm
with approximately $8.0 billion of capital under management. Golden Gate
is dedicated to partnering with world-class management teams to invest
in change-intensive, growth businesses. The ?rm targets investments
where there is a demonstrable opportunity to signi?cantly enhance a
company’s value. The principals of Golden Gate have a long and
successful history of investing with management partners across a wide
range of industries and transaction types, including leveraged buyouts,
recapitalizations, corporate divestitures and spin-o?s, build-ups and
venture stage investing. For additional information, visit
http://www.goldengatecap.com

About Clover Technologies Group
Clover
Technologies Group is the global leader in providing vertically
integrated, closed-loop environmental solutions, including the recycling
and remanufacturing of imaging supplies. Founded in 1996 and with an
annual revenue of over $450 million, Clover is one of the fastest
growing, privately held companies in the United States. Clover is also
the world’s largest collector and recycler of empty ink and toner
cartridges in the aftermarket imaging supplies industry and provides
comprehensive recycling services for small electronics including cell
phones. The complete line of Clover’s quality imaging supplies is
available through industry leading resellers and wholesalers and
marketed under a variety of private label brands. To learn more, visit
http://www.clovertech.com

About West Point Products
West Point
Products has been a leading manufacturer of premium replacement imaging
supplies since 1972, having built its business by adhering to its
self-prescribed 5 Pillars of Success: Quality, Service, Selection,
Integrity, and People. In support of this commitment to its customers,
West Point Products has become one of only a handful of companies in the
imaging industry to hold both ISO 9001 and STMC certi?cations. As
further testament to West Point Products commitment to its customers, it
continues to lead with innovative products and service offerings,
including Axess MPS, a suite of MPS products and services, and AgriTone™
Premium Replacement Cartridges, remanufactured cartridges with high
levels of Bio-content. To learn more, visit http://www.westpointproducts.com

[Author]

April 19, 2010 at 11:16 AM