Fujifilm Acquires Avecia’s Inkjet Business

Fuji Photo Film Co., Ltd. announced that it has concluded a contract to acquire the Avecia Group’s Inkjet business, headquartered in Manchester, England, a leading global player in production and sales of dyes and inks for inkjet printers. The purchase price is 150 million pounds sterling ($258.5 million) and the transaction is expected to complete in February 2006.
    
Avecia’s inkjet business keeps a leading global position in the development, manufacturing and sales of dyes, inks and pigments for inkjet printers. As home use of inkjet printers grows, Avecia benefits from an impressive product range for dyes, inks and pigments for inkjet printers, for which demand is increasing.
    
In the fine chemistry field, Fujifilm has accumulated sophisticated know-how in materials development and synthesis over many years of R&D in such fields as silver halide photography, printing and medical X-ray film. It has applied this technical expertise to the development and commercialization of various functional materials such as Fujitac, WV film, DVD dye, and Color Resist for liquid crystal displays. This acquisition will enable Fujifilm to effectively use the strong product platforms, production facilities and established sales channels developed by Avecia. By integrating its own synthetic chemicals technology, dispersive technology, and raw materials technology with Avecia’s inkjet production technology, Fujifilm will develop inkjet materials with high durability and other superior characteristics that will enhance its technical position in the market. Fujifilm expects to expand its business in ink materials for inkjet, a field in which stable growth in demand is anticipated.
    
To make further headway toward new growth strategies, a key part of its medium-term management plan, Fujifilm has been aggressively making capital and R&D investments. Fujifilm has been actively expanding its business through M&As, such as the purchase of the Microelectronic Material division of U.S.-based Arch Chemicals, Inc. and the acquisition of UK-based Sericol Group Limited, expanding its semiconductor processing materials business and printing business. The acquisition of Avecia is an integral part of this growth strategy.
     
Avecia’s Inkjet Business was established in 1999 as part of buyout of the former Zeneca Specialties business from AstraZeneca. Its net sales were approximately 14.3 billion yen ($121.5 million) in 2005, and approximately 340 employees worked at its two manufacturing plants, located in the U.S. and UK, and its research center in the UK.