The ink industry has been relatively quiet in terms of mergers and acquisitions in recent years. The few that have occurred have been focused on packaging ink manufacturers,  with an eye on increasing their presence in geographic regions (multiple companies acquiring packaging ink manufacturers in Latin America, for example).

On Jan. 20, 2020, INX International Ink Co. made a significant announcement, stating its intention to acquire Eppstein, Germany- based RUCO Druckfarben. With $40 million in sales in 2019, RUCO Druckfarben is the 25th largest global ink manufacturer, and is focused on the screen, pad, UV dry offset, flexo and gravure printing ink fields.

INX International is a subsidiary of Sakata INX, the third-largest ink manufacturer in the world. Sakata INX reported $1.375 billion in sales in 2018. With $375 million in ink sales, INX International is the third-largest ink producer in North America, and has a strong position in South America. INX Europe has manufacturing locations in the UK, Spain and France, and produces inkjet inks in the Czech Republic and Italy.

Founded in 1857, RUCO Druckfarben has approximately 150 employees, and has representatives in more than 70 countries. The transaction is expected to be completed by the end of the first half of 2020; INX noted that once the acquisition is approved, Moritz Hartmann will become sole managing director and will manage the company with the current leadership team.

Notably, INX did not have manufacturing capabilities in Germany, and RUCO will enhance INX’s position in the screenprinting and pad printing ink segments. Meanhwile, RUCO will have the backing of Sakata INX’s R&D, purchasing and sales teams.

“RUCO is an established and recognized ink supplier with considerable market experience and technical knowledge,” said Peter Lockley, president of INX Europe, in making the announcement. “Together with our global reach, product development and raw material sourcing capabilities, the new company will work to strengthen INX’s presence in Europe.”

This acquisition, if approved, will also expand INX’s reach in a number of new markets. RUCO has staked a strong position in toys, for example.

“With this investment, we plan to advance their portfolio and expand RUCO’s lead position as a supplier to the toy, pharmaceutical and packaging industries,” Lockley said. “Customers will have greater access to the world-class technologies and best practices leveraged from the larger global presence of our parent company, Sakata INX.”