Lexmark to be taken private by Chinese buyers for $3.6B
April 21, 2016
Lexmark (NYSE: LXK) has agreed to be taken private by a group of Asian investors including Apex Technology, PAG Asia Capital and Legend Capital in an all-cash transaction with an enterprise value of about $3.6 billion (net of cash). The deal marks an apparent end to the printer and software company's six-month exploration of strategic options at a time when the printing industry as a whole struggles to maintain its foothold in an increasingly digital market.
Though Lexmark will remain headquartered in Lexington, KY, the company intends to bolster its access to the Asian market under the pending ownership of mostly China-based acquirers. If the transaction reaches its expected 2H close, it would continue a recent rise in acquisitions of U.S. companies by Chinese buyers: 29 such deals were completed in 2015, roughly 3x the total from just two years earlier. The transaction will be reviewed by the Committee on Foreign Investment in the U.S., the same entity that earlier this year blocked the purchase of Philips' (NYSE: PHG) LED and automotive lighting unit Lumileds by a fund backed by China's GSR Capital.