Clarke American parent company withdraws check printing company from sale

SAN ANTONIO, Texas – Clarke American is no longer for sale. The check printer’s parent company Novar PLC announced last week it was pulling its Security Printing Services business from the auction block because the prices offered “do not adequately reflect the full economic value of this business.” Clarke American is the principal business of Security Printing Services. Since the sale announcement was made in October 2001, Novar said “the business has continued to make progress and retains its excellent cash characteristics and growth potential.” Novar’s Board also acknowledged that “a further period of uncertainty would be damaging to the business and not in the interests of Novar shareholders.” Instead, said the board, Novar will continue to develop its Security Printing Services, “as well as the wider Group.” When the intended sale of Clarke American was announced last year, a Novar release said the company intended to focus the longterm strategy for the Group on its other business groups and the development of Intelligent Business Systems and Indalex Aluminum Solutions. Novar expected the purchase price of its Security Printing Services business “to fall between $660 million and $840 million.” (CU Times March 27). But in November 2001, Clarke American won the Malcom Baldrige National Quality Award and in July the check printer opened its second call center in northwest San Antonio, giving the company seven facilities nationwide. A company representative for Clarke American said Novar now would make more money by retaining Clarke American than by selling it.