X-Rite's plan to acquire Pantone has caught the eye of Standard & Poor's Ratings Services and Moody's Investors Service. The two financial service providers placed X-Rite under review for possible downgrades based on the significant debt the company is taking on to finance the reported $180 million price tag for Pantone.
According to X-Rite's press release announcing the acquisition, "This transaction will be funded exclusively with cash, which will be financed through new borrowings. Merrill Lynch, Fifth Third Bank, National City Bank, LaSalle Bank and GoldenTree Asset Management, LP have committed to a total debt package of up to $415 million to fund the transaction and refinance X-Rite's existing debt."
X-Rite held a conference call to discuss the transaction earlier today which can be listened to X-Rite's Investor Relations Web site. During the call Mary E. Chowning, CFO of X-Rite noted that they recognize the large debt load the company is taking on and will look to refinance at lower rates when the market permits.
Discussion
By AVisciciulli on Aug 27, 2007
I can't honestly say I've ever like X-Rite as a mfg. in this business, especially after they bought out their more user friendly rival Gretag. But my personal dislike for their products is dwarfed by the opinion that Pantone has caused more problems than solutions for this industry. Maybe having a scientifically oriented group like X-Rite owning them will turn them into an actual useful resource for printing.
By Bob Emrick on Aug 27, 2007
Pantone being in control of a more scientifically oriented group may indeed have its advantages... and there is vast room for improvement as far as meeting the needs of Commercial Printers... such as having the fortitude to print a "4-Color Process Guide" (swatch book showing screen mixes of process) that actually shows the "nearest possible" mix TO and is identified BY use of a PMS NUMBER... and is printed and bound in the same order as their Solid PMS Color Guides... (one example of improvement needs). However, I do wonder if X-Rite having control over the PMS system and the possibility of their making it in any way "exclusive" to their own products would be something to watch out for. Of course this would limit the sales... and probably not happen... (?)
Discussion
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