Clover in Strife rtmworld

Is Clover In Strife? Law Firm Brought In to Evaluate

Clover in Strife?

Clover in Strife rtmworldAccording to Bloomberg, Clover Technologies Inc., (Clover) has brought in law firm Kirkland & Ellis LLP and investment bank Jefferies LLC to evaluate balance sheet alternatives and strategic options.

According to the article, informers, or whistle-blowers, have asked not to be identified.

The Clover website states the company was founded in 1996 and claims it is “the global leader in the recovery, remanufacturing and remarketing of technology assets.” The company also claims to collect, re-manufacture and distribute millions of laser and inkjet printer cartridges and wireless devices through manufacturing facilities in the U.S., Mexico, Europe, and Asia.

The Bloomberg report also states the private equity owner, Golden Gate has declined to comment. The company has allegedly borrowed US$693 million to “fund a $178 million dividend to shareholders in 2014, and to refinance its existing debt and pay fees and expenses.”

Clover claims it has experienced a sharp decline in its imaging supplies business. Observers have told RT Media that this has come from two different directions. “Clover’s revenue has fallen from a high of US$1.4 billion to about US$550 million,” one person reported. “About US$420 million of that is US-based and the rest comes from sales in other global regions including Europe.”

Another industry expert suggested that the influx of Chinese-made new-built cartridges has hurt Clover’s sales, given they are much cheaper, and not necessarily worse in quality.” He added, “the recent union between HP and Xerox, the largest MPS provider in North America, has resulted in a loss of sales for Clover.”


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