Private-Equity Firm, Management to Acquire Clover Imaging
Clover Imaging Group, which is said to be the world’s largest collector and remanufacturer of printer cartridges, announced today that Clover Imaging’s executive team and investment-firm Norwest Equity Partners have entered into a definitive agreement with 4L Holdings Group to acquire the Clover Imaging business unit. The transaction has been approved by 4L Holdings’ lenders. Financial terms were not disclosed. 4L Holdings Group is the parent company of Clover Imaging.
With business spanning 43 countries, Clover Imaging Group is said to be the global leader in producing remanufactured printer cartridges. Compared to single-use OEM and clone/new-build cartridges, Clover says it environmentally friendly cartridges have been shown to use 79-percent less material and 44-percent fewer natural resources, representing a 50-percent smaller overall environmental impact. On a monthly basis, Clover Imaging collects and recycles over 3.5 million cartridges and manufactures over 1.4 million cartridges. Clover Imaging also offers managed print, technical support, training, and marketing services.
Once the transaction closes, which is expected to occur within the next month, Clover Imaging will operate as a separate and independent entity from 4L Holdings Group. Clover Imaging’s management team, including Jim Cerkleski, chairman; George Milton, CEO; and Eric Martin, president; will continue to lead the business, which will remain headquartered in the Chicago area.
Jim Cerkleski, chairman of Clover Imaging Group, commented: “Clover’s executive leadership team, in partnership with Norwest Equity Partners, will once again control the destiny of the company we built — demonstrating our unwavering commitment to the success of the business and our shared confidence in the aftermarket imaging supplies industry and consumers’ demand for environmentally conscious products like ours. Under our new, very low debt structure, we have a lot of flexibility moving forward and are well positioned to write the next chapter for Clover Imaging Group. We could not be more excited about the growth opportunities this new capital and partnership will provide.”
Founded in 1961, Norwest Equity Partners is said to have “a reputation for its collaborative investment approach and commitment to partnering closely with the management teams of its portfolio companies to create long-term success and stakeholder value. Norwest Equity Partners have invested in more than 400 companies to date.
Tim DeVries, managing partner at Norwest Equity Partners, commented: “We are excited about our investment partnership with Clover Imaging Group — it is a well-run business with a highly experienced, nimble management team that knows how to innovate and execute. We look forward to collaborating with them to leverage the company’s strong position in the marketplace and put our capital and resources to work to further expand and grow the business.”
Lincoln International acted as the exclusive investment banking representative for 4L Holdings and Clover Imaging Group, working closely with the Company’s management team and shareholders throughout the sale process.