For the ink industry, the past year was a relatively quiet year in terms of mergers and acquisitions. In the past two months, however, the industry has seen some M&A activity in Latin America, as the two largest ink manufacturers add to their operations in this growing region.
 
In both cases, Flint Group and Sun Chemical acquired the remainder of the shares of the respective companies they purchased, and each of the two acquired companies are focused in the Andean region, covering Colombia, Ecuador, Peru and Venezuela.
 
In mid-December 2013, Flint Group purchased Tintas Graficas Vencedor (TGV), a Lima, Peru joint venture Flint Group held with Corporacion Peruana de Productos Quimicos S.A. (CPPQ). TGV specializes in solvent- and water-based liquid packaging inks, as well as the resale of narrow web, flexographic plates and sheetfed inks.
           
The purchase of TGV gives Flint Group further strength in the liquid packaging film and foil and water-based ink market in Latin America’s Andean region, as well as access to narrow web and plate and sheetfed ink sales.
 
“This latest acquisition continues in our strategy of developing a market leading position in Latin America, where we aim to be the print consumer supplier of choice to the packaging and printing industry,” said Antoine Fady, CEO of Flint Group, in announcing the acquisition.
 
On Jan. 3, 2014, Sun Chemical Group Coöperatief UA announced it purchased the remaining shares of Tintas SA and Sinclair SA, its Colombian joint venture companies, which Sun Chemical held with Inversiones Mundial (Grupo Mundial) since 1999, when Sun Chemical acquired Coates Lorilleux.
 
The Tintas/Sinclair Group sells printing inks and related graphic arts products primarily to the packaging market in the Andean region of Latin America. It had annual sales of more than $100 million.
 
“This acquisition reinforces Sun Chemical and DIC’s commitment to both the printing ink business and the growing Latin American market,” said Rudi Lenz, president and CEO of Sun Chemical in announcing the acquisition.
 
In talking with ink manufacturers, Latin America frequently comes up as an area of opportunity, with packaging printing on the rise. The moves by Flint Group and Sun Chemical to add to their ink and graphic arts portfolio in the region provides clear evidence of this.