Clover Imaging Acquires Competitor’s Assets
On September 13th, printer-cartridge remanufacturer Clover Imaging Group reported that it had signed an agreement to purchase the assets of LMI Solutions – a Phoenix-based competitor in the remanufaucturing business. Clover Imaging will purchase all of LMI’s inventory, intellectual property rights, and manufacturing equipment.
Clover itself has been in the news this summer with the report that it had lost a major customer, and had been negatively affected by the expanded HP Inc.-Xeror partnership, under which it’s expected to lose the supply of its remanufactured printer cartridges to Xerox. Clover reported in July that its parent company, 4L Technologies, is carrying approximately $650 million of debt, and subsequently appointed legal and investment advisers.
Clover says there will be no disruption to LMI’s customers.
The acquisition is subject to approval by the court overseeing LMI’s receivership process. In August, LMI was also hit by the expanded HP-Xerox relationship, with the Arizona State Court appointing MCA Financial Group as receiver.
Jim Cerkleski, chairman of the Clover Imaging Group, commented: “The purchase of LMI’s business assets enhances our capabilities, customer reach, and demonstrates our confidence in the strength of the imaging supplies market. Clover offers the only true alternative to OEMs with significantly higher margins for our reseller partners. In addition, with the focus on environmental sustainability at an all-time high, we are seeing businesses and consumers alike abandoning single-use cartridges for our lower cost, environmentally conscious printing solutions. We are excited for the future.”
- July 2019: Clover Launches Amazon Content Platform to Protect Resellers
- July 2019: Clover Seeks to Reassure Customers
- July 2019: Moody’s Downgrades Clover Technologies’ Debt Rating
- July 2019: Clover Considers Strategic Options in Wake of Customer Cutbacks
- 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