Element Solutions Inc (ESI) announced on Tuesday that it has agreed to sell its flexographic printing plate division, MacDermid Graphics Solutions, to XSYS, a prominent company in the flexographic printing sector, for approximately $325 million.
The sale of MacDermid Graphics Solutions represents the majority of Element Solutions' Graphics Solutions segment.
The company plans to offset nearly all taxable gains from the transaction with an existing capital loss.
The proceeds from the sale are intended to reduce leverage and support general corporate activities. The transaction is anticipated to close by late 2024 or the first half of 2025, pending necessary regulatory approvals.
Benjamin Gliklich, President and CEO of Element Solutions, stated, "MacDermid Graphics is a valuable business but not central to Element Solutions' core portfolio and long-term strategy. XSYS is an excellent fit for its talented team. This divestiture will allow us to focus our portfolio, accelerate growth, enhance cash flow generation, and strengthen our balance sheet, thereby positioning us better to seize growth opportunities in our core markets."
