The announcement that Kustom Group acquired the principal assets of Lubrizol’s Wax Compound, Ink Vehicle and Lithographic Overprint Business shakes up a segment of the industry that already has undergone sizable transformations in recent years.
 
In the deal, which was completed in late December 2014, Kustom Group acquired Lubrizol’s formulations and processing equipment. Kustom Group will continue to supply, service and support Lubrizol customers.
 
“Kustom’s mission statement has been to make for our customers those things that they do not want to make for themselves,” said David Aynessazian, VP, technical and marketing at Kustom Group. “Generally, wax compounds, oil-based ink vehicles and overprints fall into that category. Kustom has been making oil-based ink vehicles and overprints for decades, so adding the Lubrizol formulations to our stable of similar products continues to broaden and deepen our offerings to our customers to give them the continued confidence that if they are speaking to Kustom Group about their needs then they are at the right place.”
 
Jerry Trauth, product manager ink applications for Kustom Group, noted that in addition to emphasizing Kustom’s commitment to the ink industry, adding Lubrizol’s product lines will offer advantages in terms of purchasing, bringing in new products and new ideas. 
 
“Our industry continues to change and the piece of the pie for every ink maker is getting smaller and extremely competitive,” Trauth said. “These acquisitions will continue to help strengthen and stabilize our purchasing efforts. Just as important, we hope it continues to show Kustom’s long-term commitment to all of our ink customers, and especially the oil-based ink market, which has seen its share of suppliers discontinue product lines in recent years.
 
“We have found with our Varchem and Lawter vehicle acquisitions that we discover new raw materials and new suppliers, which ultimately brings new tools and new ideas to Kustom Group,” Trauth noted. “In the past, these new tools and ideas seem to bring excitement to our employees, which has a very positive effect on everything we do.
 
“We are hopeful that this ‘one stop shopping’ approach will help our customers more easily control their own raw material inventory,” Trauth added. “Kustom is experienced at manufacturing and servicing specialty product lines which may require smaller batch size, including bucket pack out options. We hope this experience equates to responsive service, and a consistent, quality product for our customers.”  
 
Aynessazian said that selling wax compounds are a new area for Kustom Group, although the company has manufactured these compounds for in-house use.
 
“As for the wax compounds, although Kustom Group has not generally offered these products to the market in any quantity before now, we have made product for our own use for some time,” Aynessazian noted. “Also, some within Kustom have made wax compounds when working for other companies in their past. So when we were approached by Lubrizol with the opportunity to purchase this business, including their state-of-the-art manufacturing equipment, we were very excited.
 
“Lubrizol and Carroll Scientific are both names that are synonymous with technology and quality as is Kustom Group, so we felt this would be a good fit,” Aynessazian added. “We are extremely pleased to add trade names such as Top Flite, Thermol, Protech and Polytech, which are industry standards, to Kustom’s basket of well known names like Lithomaster, Kentucky Shine, Strike Thru, Sandy Feel, Kustom Kure and many others.”
 
“Wax compounds are a key ingredient in offset inks, especially on the oil-based side,” Trauth added. “By adding wax compounds to Kustom’s other lines of vehicles and additives, it will allow our customers to reduce the number of POs and more easily fill each truck to reduce freight cost.”
 
In terms of the overprint industry, Trauth said that Kustom divides overprints, or top coats, into two categories: overprint varnishes, which are applied through the inking unit of a press; and coatings, which are applied through a coating unit attached at the end of the press, or applied off line.
 
“Kustom carries a full product line for both applications,” Trauth said. “We carry oil-based, UV and aqueous overprint varnishes, and UV and aqueous coatings. We also carry UV silkscreen products, and aqueous and UV coatings for flexo.
 
“Our recent focus has been on specialty UV and aqueous coatings such as sandy feel, soft feel, textured, raised, and many other tactile products,” Trauth added. “Kustom also has developed many effect pigment coatings such as angle dependent, pearl, glitter, sparkle and others. There is also interest in compliance products, such as Nestle and Swiss, BPO-free and others.” 
 
Aynessazian said that the goal is to make the integration of the Lubrizol businesses happen as smoothly as possible for customers.
 
“Many of these customers are already customers of Kustom Group,” Aynessazian noted. “For these customers, we believe that this transaction is a benefit in allowing them to consolidate their purchases. For those customers who are new to Kustom Group as a supplier, it is our goal to show them the same level of product quality and service that they have counted on and received through their relationship with Lubrizol.”