Business Weekly - Cambridge, UK

Reversing a trend of American swoops for Cambridge ink jet interests, Domino has bought Citronix LP from its management team of Richard Fox, Dennis Sibley and Michael Comer.

Citronix, based in Fort Worth, develops and manufactures a range of innovative continuous inkjet printers that are sold worldwide through a network of distributors.

Formed just four years ago, Citronix is now selling in more than 30 countries and has an impressive growth record.

Ownership of the Citronix brand will further increase Domino’s market share in its core business and enable access to a wider range of customers.

Net debt assumed was $0.2m. Deferred consideration is also payable based upon the operating profits of the business.

This deferred consideration is subject to a maximum of $20m over a five-year period starting January 1, 2006.

Failure to achieve minimum levels of operating profit during this five-year period automatically reduces the maximum deferred consideration to $10m payable over a period that may extend to December 31, 2015.

The value of gross assets of Citronix at the end of December 2004 was $664,000 and operating profits for the 12 months were $390,000.

Fox, Sibley and Comer have been retained on long-term employment contracts.

Domino expects the effect of the transaction to be earnings neutral in the remainder of its financial year to October 31.

MD Nigel Bond said: “Citronix has successfully established a position in the market for continuous ink jet products and is demonstrating strong growth.

“The Citronix brand will be retained and the business will continue to operate separately from Domino.

“Citronix was profitable in 2004, its first full year of trading, and we expect the acquisition to be earnings accretive from 2006.”