2005 Takeover Weighs Down Clarke American

SAN ANTONIO – Check printer Clarke American reported yesterday that net income for its fiscal year was halved to $19.5 million, mostly because of interest charges related to the 2005 acquisition by M&F Worldwide. Takeover-related interest expense rose almost six times, to $60.8 million, in 2006, the company reported. M&F Worldwide, the investment vehicle for corporate raider Ron Perelman, acquired Clarke American for $800 million from British conglomerate Gus plc. M&F Worldwide, is poised to acquire Clarke American competitor John H. Harland Co. to create the largest check printer in the U.S. The deal is being closely scrutinized by the U.S. Justice Department for antitrust implications. Clarke American said revenues growth fo 2006 was almost flat, with fiscal year revenues at $623.9 million.