UV Color, Inc. (www.uvcolor.com) is a leading manufacturer of high-quality gift cards, telecom cards and trading, collectable and game cards, as well as a provider of complete secure card packaging solutions for branded prepaid cards issued by Visa, MasterCard, and American Express, among others. UV Color is one of the largest card manufacturers in North America, producing hundreds of millions of cards annually. As an innovative, solutions-driven company, UV Color offers its growing base of domestic and international customers the broadest complement of printing, imaging, finishing and packaging services in the industry.
UV Color participates in the rapidly growing, $9.1 billion card manufacturing industry. Between 2000 and 2005, global plastic card production increased at a compound annual rate of over ten percent to reach approximately 15 billion cards in 2005. The use of prepaid cards (i.e., gift cards, telecom cards, branded prepaid cards, etc.) has exploded since they were first introduced in the early 1990s. Published reports of market spending on prepaid cards approached $500 billion in 2005, with value stored on prepaid cards estimated to be a multi-trillion dollar global opportunity by 2008.
Prestwick Partners initiated this transaction and acted as the exclusive financial advisor to UV Color and its shareholders. Prestwick Partners designed an M&A process, prepared marketing materials, evaluated acquisition proposals and negotiated the transaction with Plastag Holdings, LLC, a portfolio company of Valor Equity Partners, L.P., a Chicago-based private equity group. The UV Color transaction is Valor’s fourth acquisition in the card manufacturing industry. Our process included both domestic and international strategic acquirers and private equity buyers.