Chromagem Acquired for $2.8m
API Group PLC
21 March 2000
API ACQUIRES AND STRENGTHENS POSITION IN
HOLOGRAPHIC DESIGN AND PRODUCTS
API plc, the specialist foils, laminates and packaging group, announced today
the acquisition of Chromagen, based in Ohio, for a cash consideration of $2.8
million (£1.8 million) from its founders. Formed in 1982, Chromagen is a
leading designer and originator of diffraction patterns used in the production
of holography for premium packaging and security devices and complements API's
manufacturing activities in these areas.
API regards anti-counterfeiting, document authentication and brand protection
as some of the fastest growing global market places and has been actively
developing its products and services in these areas. The Group supplies
products in many security and packaging areas, including holograms for brand
authentication, bank notes, cheques, ticketing, pharmaceutical packaging and
high visual labelling which, with API's unique laminates, are used to combat
product counterfeiting.
Chromagen has established a worldwide client base, which utilises its
holographic work for product protection and authentication, many of which are
multinational household names.
Following the acquisition, the management of Chromagen will be staying with
API and working to exploit opportunities within the Group in applying new
holographic design and origination to its products. New products for API are
expected to follow later in the year utilising Chromagen's innovative
diffraction patterns.
Commenting on the acquisition, Michael Smith, API's Group Chief Executive
said:
'We indicated at our preliminary results in December that we were keen to
develop our security and brand authentication products, where we see good
opportunities for growth. Chromagen complements this development programme and
is an important acquisition to the Group in terms of developing our design
capabilities.
'Chromagen fills the gap in our holographic portfolio and we expect to use its
design and origination know how in our current security and brand
authentication products. We also anticipate launching new products during the
year into these rapidly growing markets where the global cost of product
counterfeiting, retail theft and related areas has been estimated to be as
high as £300 billion.'
Enquiries:
Michael Smith, Group Chief Executive
API Group plc Tel: 01625 610334
Tim Spratt / Tania Wild
Financial Dynamics Tel: 020 7831 3113
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