PAG, Legend support $3.6b acquisition of US-based Lexmark

According to a statement, the consortium will pay $40.50 per share for all outstanding Lexmark shares, representing a 16.8% premium to the April 19 close. The acquisition, which is aimed at penetrating Asia Pacific printing markets, will be financed through debt and equity contributions from the investor group. 

"With Apex's knowledge in printers and PAG's experience in buyouts, our consortium is a perfect combination and is uniquely positioned to work with Lexmark," Weijian Shan, chairman and CEO of PAG, said in a separate disclosure. "We look forward to turning Lexmark into a market leader not only in the US but also in Asia."

Lexmark operates in more than 170 countries with a focus on print services, enterprise content management and financial process automation. The company's revenue declined 4.3% during the 2015 financial year to $3.5 billion. During the same period, it posted a net loss of $40.4 million versus a profit of $79.9 million the prior year. It will be de-listed from the New York Stock Exchange but is expected to remain headquartered in the US under the leadership of current Chairman and CEO Paul Rooke.

The investment follows the final closing of PAG's second Asia fund at $3.7 billion. The firm targets sectors that leverage private consumption and typically commits at least $100 million in equity per deal.

Legend Capital, which is best known for its venture capital investments, was active in China's enterprise services sector earlier this month with participation in a $30 million Series C round for cloud computing company Haizhi.

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• Topics
• Greater China
• Support services
• Technology
• Buyouts
• PAG
• Legend Capital