Consolidation Slows, But Top Suppliers Keep Growing

-- graphic arts online, 3/1/2001

The somewhat frantic pace of acquisitions among domestic ink manufacturers seen in recent years seems to be abating, perhaps because most of the larger potential targets have been acquired.

With the exception of the mid-year acquisition of Kromacorp International by SICPA Securink, what action that still is occurring seems to be limited to acquisitions of smaller regional ink companies, principally to afford their purchasers a presence in new market areas.

The sale to Flint Ink of the Alper Group (formerly fourth on the list in 2000) and the Kromacorp transaction have caused ranking changes among the top ink companies, including two firms that are new to the list.

This list, which is based on interpolations from reliable government and industry sources, shows estimated U.S. ink sales only, excluding any other products a company may sell.

Gap tightens

The gap between U.S. sales figures for the two largest domestic ink companies, Sun Chemical and Flint Ink, tightened considerably last year-a situation reminiscent of the mid-1970s, when Sun Chemical began its run against the leader at the time, Inmont.

Flint finalized its acquisition of the Alper Group in January 2000, giving it an additional $170 million in sales. But Sun Chemical still holds a commanding lead over Flint in the rest of North America and overseas. Additionally, Sun Chemical's Kohl & Madden subsidiary continues to acquire small regional ink manufacturers.

Though it held onto third position, INX International shows a major drop in sales volume from the previous year, resulting from declining sales in heatset and packaging inks and from the withdrawal of Toyo from an agreement for "complementary manufacturing" that allowed INX to consolidate about $70 million of Toyo's sales.

Expansion program

With the Alper Group dropping off the list, Wikoff Color moves up to fourth place. The company continues its successful expansion program, augmenting its product lines and adding depth to its Midwest production and distribution facilities.

Taking fifth and sixth place are Quad/Graphics and SICPA Securink, the latter picking up about $75 million in sales from its acquisition of Kromacorp. Growth of the Quad/Graphics ink operation keeps pace with that of its printing company parent.

Siegwerk USA, engaged in broadening its product base, moved up to seventh place, aided by about $4 million in imports of sheetfed inks for U.S. distribution. Superior Printing Ink drops two places to eighth, despite reasonable growth last year and its purchase of two regional ink companies in southern California and southwest Ohio.

Color Converting and Thrall come in at ninth and tenth, respectively, as the former extends operations in the Midwest and the latter solidifies its position as the nation's leading supplier of screen inks.

Rounding out the top 12 are Toyo, which returns as a separate company, and Huber, a new addition to the list.