Cartridge World Management Buy-Out Will Accelerate Expansion

Posted on August 02, 2007 by Bill Dube

Company Announces 80 Percent Acquisition of Holdings with Australian-based Private Equity Fund 

EMERYVILLE, CA: The world’s largest print cartridge refill and manufacturing franchisor, Cartridge World, is moving into its next growth phase after agreement this week for an Australian-based private equity fund and the company’s management to buy a controlling shareholding from the two founders, Bryan Stokes and Paul Wheeler.

Wolseley Private Equity, together with Cartridge World’s CEO, Burt Yarkin, and current management in the USA, Australia and the United Kingdom, has agreed to buy 80 percent of the company.  Cartridge World’s business activities will continue without major change, although the company intends to pursue faster global expansion.  The headquarters will remain in Emeryville with regional offices in Europe and Australia.

 “We see considerable opportunity to increase our worldwide presence, by expanding the network we now have in place with our 46 master franchisees and adding master franchisees in fast-growing countries in Asia, Europe and South America,” Yarkin said.   “The increasing use of computers and digital cameras is boosting worldwide demand for printer cartridges.  We plan to double the number of Cartridge World locations in the coming three years.”

Wolseley Private Equity’s managing director, Peter Hasko, said he was confident the already fast-growing franchise group could meet future growth targets, with Wolseley’s assistance.

“The most important aspect of any investment for us is the people,” Hasko said. “We are looking forward to working with the high calibre team at Cartridge World.”

Cartridge World is an international success story, having already grown to more than 1,500 outlets in 45 countries since it was founded in Adelaide, Australia, in 1987. It is the only global company in cartridge replacement and one of the fastest growing franchise groups in the world.  Retail revenues are now more than $350 million worldwide.

“Cartridge World offers comparable quality cartridges to original equipment manufacturers, at a substantially lower price, along with an additional benefit to the environment,” Yarkin said.  “The rising awareness of the need to recycle and reduce unnecessary waste is helping our business.”

Scope for growth is enormous.  In most developed countries less than a quarter of the printer cartridges used by business, organizations and homes are refilled.  An estimated 350 million printer cartridges go into landfills each year in North America alone.  A recycled cartridge can be refilled for approximately half the cost of a new one and refilling reduces waste and helps the environment.  

About Cartridge World

Emeryville, CA-based Cartridge World is the world’s fastest growing ink refilling retailer in the $80 billion printer cartridge industry. The company refills empty ink cartridges and remanufactures empty toner cartridges for inkjet printers, laser printers, fax machines, and photocopiers with top quality, brand-specific ink and toners; it offers consumers and businesses a more affordable option to buying new, provides a 100% satisfaction money-back guarantee and helps the environment by keeping cartridges out of landfills. Voted #1 in the category of toner replacement services by Entrepreneur Magazine Franchisee 500, Cartridge World has more than 1,500 franchised retail locations in 45 countries.  Cartridge World North America was founded in 2003. There are currently more than 600 locations open in the United States, with 800 locations expected by the end of 2007.

About Wolseley Private Equity

Wolseley Private Equity is an independent private equity firm based in Sydney, Australia with over $100 million under management. It invests in companies with enterprise values between $20 million and $150 million.  Wolseley’s experienced management team works actively in assisting companies to drive revenue and strategic value by adding to the companies’ skills and improving governance, strategy and operational aspects.

Printer cartridge recycling facts

Printer manufacturers have known for years that the real money is in the ink, not the hardware. They’ve tried to keep this lucrative market to themselves by telling consumers that printers can be damaged and warranties voided if generic ink cartridges are used.  With credible refilling/remanufacturing options becoming available worldwide, consumers are learning the extent to which ink prices are being inflated. By volume, cartridge ink has become more expensive than many luxury items. It is now more expensive than Dom Perignon or Chanel No 5 Eau De Parfum.

•  Almost 80% of empty cartridges are incinerated or dumped in landfills.
•  In one year, if the world's discarded cartridges were stacked end-to-end, they would circle the earth more than three times.
•  A laser cartridge thrown into landfill can take up to 450 years to decompose. Some components made of industrial grade plastics will take over a thousand years to decompose.