Digital printing is on the rise, and there is little doubt that growth will continue. According to Smithers’s recent report, “The Future of Inkjet Printing to 2025,” the market for inkjet printing is presently worth $80.4 billion, heading to $118.2 billion in 2025.

Inks are also on the rise. Allied Market Research’s study, “Global Digital Ink Market by Type, Technology Type, Substrate Type, and Application: Global Opportunity Analysis and Industry Forecast, 2019-2026,” places the digital ink market at $2.6 billion in sales in 2018, reaching $4.3 billion by 2026.

There’s so much in the way of opportunities ahead for digital printing to grow. The textile market is growing rapidly, and packaging is becoming of increasing interest. For an ink company, adding a company in the digital ink field is a good play.

The news that Sun Chemical and its parent company, DIC Corporation, have entered into a definitive agreement to acquire Sensient Imaging Technologies makes a lot of sense in that context. With its SunJet line of inks, Sun Chemical is already a sizable player in the inkjet ink segment, but Sensient Imaging, the 15th largest North American ink company according to our Top 20 Report with estimated sales of $70 million annually, adds more depth in a number of growth areas.

The transaction is expected to be finalized in the second quarter of 2020.

When the acquisition is completed, Sun Chemical and DIC will expand its inkjet ink capabilities and expertise. Sensient Imaging specializes in water-based, pigmented and dye-based and sublimation inkjet inks for textile, wide format and industrial applications, including packaging and edible inks, as well as water-based pigmented and dye-based inkjet inks for desktop printers.

“We’re excited for the opportunities this acquisition presents not only for Sun Chemical but the future of digital inks,” said Mehran Yazdani, president of Sun Chemical Advanced Materials, in announcing the deal. “Sensient Imaging Technologies’ portfolio and expertise in the industry, combined with our extensive background in industrial inkjet ink solutions, will enhance our combined customer support. Our customers rely on digital print’s agile supply chain and production flexibility, so they will value this acquisition because it will drive future innovation and expansion.”

Meanwhile, for Sensient Technologies, Sensient Imaging’s parent company, the move to divest its inkjet ink business has been telegraphed for a while.

In the company’s financial report from 3Q 2019, the company stated it “has decided to explore strategic alternatives for certain product lines that are outside of the key strategic markets of food colors, cosmetics, pharmaceuticals, finished flavors, extracts, and natural ingredients. Exploring alternatives for non-core product lines will allow the company to focus on the core remaining product lines and improve the overall portfolio and growth prospects.” Inkjet inks are one of these non-core lines.

In announcing the sale, Paul Manning, Sensient’s chairman, president, and CEO, reiterated Sensient’s goal to focus on its core businesses.

“As announced last year, the sale of the inkjet ink business will strengthen our focus on our core businesses,” said Manning. “We are pleased that we can transition the business to a buyer that is committed to the industry. Our service and quality commitments to our customers will be maintained, and we will work to ensure a seamless transition.”

Meanwhile, Sensient has two operating facilities, in St. Louis, MO, and Morges, Switzerland. Its emphasis on textiles, packaging, industrial products as well as OEM printers is a good fit for Sun Chemical. The company’s SensiJet SX water-based ink platform is being developed for packaging, while ElvaJet is a key textile ink line. They should fit well within Sun Chemical’s inkjet portolio.