Con­sor­tium led by Apex to buy Lex­mark for $3.6b

China Daily (Canada) - - LIFE - By REUTERS

Printer maker Lex­mark In­ter­na­tional Inc has agreed to be taken pri­vate by a group of in­vestors led by Chin­abased Apex Tech­nol­ogy Co Ltd and PAG Asia Cap­i­tal in a deal val­ued at $3.6 bil­lion, the com­pany said.

Reuters re­ported ear­lier this month that Apex, which man­u­fac­tures ink car­tridge chips, was in ne­go­ti­a­tions to buy Lex­mark.

Like other printer mak­ers, Lex­mark has strug­gled to ad­just as cor­po­rate clients slash costs and con­sumers shift to mo­bile de­vices from per­sonal com­put­ers.

Lex­mark said the deal will help its ef­forts pen­e­trate the Asia-Pa­cific mar­ket.

The deal, which is ex­pected to close in the sec­ond half of 2016, is sub­ject to reg­u­la­tory ap­proval in the United States, in­clud­ing by the Com­mit­tee on For­eign In­vest­ment in the United States.

CFIUS is an in­ter­a­gency com­mit­tee of the US govern­ment that re­views merg­ers to en­sure they do not com­pro­mise na­tional se­cu­rity.

Western Dig­i­tal Corp said in Fe­bru­ary a unit of China’sUnis­plen­dour Corp Ltd ter­mi­nated a deal to take a 15 per­cent stake in the com­pany af­ter a de­ci­sion by CFIUS to con­duct an in­ves­ti­ga­tion.

Lex­mark had an­nounced in Oc­to­ber that it was ex­plor­ing strate­gic al­ter­na­tives, in­clud­ing a sale, and that it had hired Gold­man Sachs Group Inc as an ad­viser.

Lex­mark will re­main head­quar­tered in Lex­ing­ton, Ken­tucky, and Chair­man and Chief Ex­ec­u­tive Paul Rooke is ex­pected to con­tinue to lead the com­pany.

The deal will be fi­nanced through equity con­tri­bu­tions by the con­sor­tium and debt fi­nanc­ing.

Leg­end Cap­i­tal Man­age­ment Co Ltd, the ven­ture cap­i­tal arm of Leg­end Hold­ings Corp, is also the part of con­sor­tium.

Gold­man Sachs is act­ing as fi­nan­cial ad­viser to Lex­mark, andWachtell, Lip­ton, Rosen & Katz is its le­gal coun­sel.

The con­sor­tium is be­ing ad­vised by Moelis & Co fi­nan­cially along with Skad­den, Arps, Slate, Meagher & Flom while King & WoodMallesons is act­ing as the le­gal coun­sel.

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