Dinglong Chemical to Acquire Remaining 80% Stake in Mito Color Imaging

Hubei Dinglong Chemical Co., Ltd, a leading producer of charge control agents (CCAs) and chemical color toners, will purchase another 80% stake from Mito Color Imaging Co., Ltd. through share placement and cash payment. The consideration will be 273 million RMB (US$ 44.5 million).

Because Dinglong Chemical acquired a 20% share in Mito for 37.4 million RMB (US$5.98 million) in December 2012 (see Recycling Times report) this latest move will make Mito a wholly-owned, Dinglong subsidiary.

Mito is one of the pioneers in the printer consumables industry in China, specializing in universal color toner cartridges. It produces 1.9 million remanufactured cartridges annually, which consume roughly 200 metric tons of color toner.

The acquisition will help Dinglong Chemical integrate its industrial line forward to finished products. The product list will now include charge control agents, colorants, polymerized color toner and remanufactured toner cartridges. Dinglong Chemical will also finance Mito Color Imaging’s production operations in the near future.

Mr. Tony Li, Managing Director of Recycling Times Media Corporation said, “Mito Color Imaging could be a good business model for some Chinese consumable companies, especially at a time when they feel lost in the unstable market environment. The company becomes part of a listed company through its standardized management, differentiated competitive strategy, advanced technology and healthy development.”