Clover Considers Strategic Options in Wake of Customer Cutbacks
According to Bloomberg, 4L Technologies, the parent company of Clover Technologies, a U.S. remanufacturer of toner and ink supplies, is considering strategic options that include the retaining of law firm Kirkland & Ellis LLP and investment bank Jefferies LLC to evaluate balance-sheet alternatives and strategic options.
According to Bloomberg, Clover informed its creditors of cutbacks by two customers, one in the wireless market, the other in the imaging market. Clover also cut its annual earnings forecast from the $135 million to $145 million it had announced in March to between $87 million and $96 million. The company, which is headquartered in Hoffman Estates, Illinois, is said to be the world’s largest collector and remanufacturer of printer/copier imaging supplies. Golden Gate Private Equity holds a majority interest in Clover.
Clover, which has $136 million cash on hand, will hold a meeting with its debt holders during the week of July 22nd.
The customer cutback in the imaging market is said to be a result of the new expanded partnership announced in June between Xerox and HP. Under the new expanded partnership, Xerox will supply toner to HP for various A4 and A3 copier/MFPs, expanding production at Xerox toner manufacturing facilities, and cutting into Clover’s supplying of toner for these models.
According to The Recycler, in September 2018, Clover’s borrowing stood at $825 million, with $65 million due for repayment or refinancing in May 2019 and $760 million due in June 2020.
- June 2019: New Program Seeks to Convert Dealers from HP to Clover Supplies
- May 2018: New Clover Services Group Provides MPS and Tech Support, Digital Marketing
- March 2018: Clover Imaging Group Responds to Canon’s Patent-Infringement Lawsuits
- October 2017: Clover Imaging Group Expands U.S. Network with Two New Distribution Centers
- May 2017: Clover Releases Updated Axess Managed Print Services Training
- April 2017: Clover Acquires ColorLabs, Maker of Imaging Products and Consumables for Mailing, Packaging, Printing