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Ilford saved by management buyout


bob fowler

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Ilford's previous owners didn't understand the market they were in. They were still thinking in 20th century ideas - dozens of markets of millions of customers. When that stopped working they tried old approaches to fixing it and we all know the result. The twenty-first century is becoming a world of millions of markets of dozens of customers. The monochrome photography market is one such. If the new management play it right they could become once again the dominant player based on their record of innovation, quality and sponsorship of b+w photography.
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This is indeed good news and we must hope that the management who will now own the company have what it takes to ensure its long term survival. However it seems to me that for this it will need to be involved in producing digital products (i.e.inkjet papers etc) as well as conventional photographic ones. The worrying aspect of the buyout is that it only involves the UK based film and paper business not the digital materials division which is located in Switzerland the future of which is still to be determined. The latter is trading profitably and may well be sold to a rival company.

 

Ilford has had a history of being passed around from one parent company to another which cannot have been good for it. It was independent until 1969 when it was taken over by the UK chemical company ICI who later sold a 40% stake to Ciba of Switzerland (this is how Ilford gained Cibachrome and manufacturing facilities in Switzerland). Later Ciba bought the rest of the company only to sell it a some years later to a US company (International Paper I think). Finally 3 or 4 years ago it was bought by the private equity group Doughty Hanson.

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I'm not sure that producing digital products would be a good idea at all. It's certainly a distraction from what I would hope would be the company's main focus, and a more profitable distraction is likely to kill the less popular products.

 

I think that Ilford can do fine if it settles down into being a small company than it has been, serving a small core of users that are going to be sticking to black and white for a long time to come.

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