US Imaging Giant Seeks New Investment Partners

The industry has heard the same rumours before, but an article published by Reuters suggests the possible sale of Clover may now proceed.

Luke Goldberg, Clover’s Executive VP for Global Sales and Marketing, told RT Media, “Over the last 16 years, Clover has grown into the largest Aftermarket company in the world.” He added, “Some of that growth has been organic, some has been by acquisition.”  Clover acquired the leading manufacturer MSE in 2014, in addition to previous acquisitions including the TRS Group, Dematec, OPRA, Pinpoint LLC, Depot America and ERS.

According to Clover Imaging Group (CIG), part of the Clover Technologies Group, it is the “world’s largest empty cartridge collector and broker.” It claims to collect more than seven million empties every month. The company also claims it is the largest global provider of remanufactured printer cartridges and parts—more than one million cartridges per month.

According to the Reuters, undisclosed sources say, “Golden Gate Capital, the private equity firm that controls Clover, has hired investment bank Morgan Stanley.” The plan is to run an auction for the company. The article also says that no deal was certain. However, the same sources say a sale could be worth US$1.5 billion, including debt.

Goldberg explained to RT Media multiple investors have been involved throughout the last 16 years. “The owners of the business are not quitting or getting out,” he said. “Senior management needs to continue to evaluate any opportunities for additional investment that can take the company to the next level.”

Many imaging companies have struggled with print consumables in the last 5 years. This has been due to a flattening demand for laser and inkjet printing, thanks to the advent of smart phones and tablets.

Clover started a successful cell phone collection business back in 2012. Exploring new investment opportunities comes at a time Clover wants to expand this business. Reuters says Clover is “betting that more consumers will trade in old phones when they upgrade to the latest model.”

Clover holds 38 patented manufacturing production processes to improve print quality. It claims to have the industry’s most comprehensive product offering with more than 12,000 SKUs.

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