On 8 September 2021, Luxembourg headquartered Flint Group owned by Koch Industries, announced that it has signed a definitive agreement to sell its Xsys division (formed in January 2021), which specializes in the development and supply of printing plates, sleeves, and adapters, and pre-press equipment to the packaging industry, to an affiliate of Lone Star Funds, a global private equity firm. The transaction remains subject to customary closing conditions, including regulatory approvals. The press release states that Lone Star Funds is a leading private equity firm advising funds that invest globally in real estate, equity, credit, and other financial assets. Amongst its globally dispersed offices, it does have an office in Dallas, Texas.
A bit of the back story
It seems that instead of selling the whole company, Flint has been able to divest the Xsys division as a first step which was likely the idea of starting it as a separate division in January 2021. As we reported about three months ago, a Reuters report on 27 May 2021 said that the Flint Group was nearing the completion of a debt refinancing deal seen as a precondition for selling the company, a process initiated in late 2019. However, the Covid-19 pandemic disrupted the sales process. Goldman Sachs’ private equity arm and Koch Equity Development, a subsidiary of Koch Industries, are the current owners.
Flint Group completes sale
Steve Dryden, Flint Group’s chief executive officer, said, “We are delighted to have completed the sale of our Xsys division. The transaction is attractive, both financially and strategically, for Flint Group as we reinforce our position as a leader in conventional and digital printing consumables and equipment for the structurally growing segments of paper and board, flexible packaging, and narrow web labels.
“I would like to thank our Xsys colleagues for all of their hard work and wish them well in their future with Lone Star.”
The terms of the transaction were not disclosed.