The digital photo company Shutterfly is buying Lifetouch, the national leader in school photography.
Shutterfly announced Tuesday it will pay $825 million in cash to acquire the privately-held Lifetouch, which is based in Eden Prairie, Minn.
Lifetouch bought the former Olan Mills Inc. in Chattanooga in 2011. The school portrait company photographs more than 25 million school children a year and generated $963.9 million in revenues in the fiscal year ended June 30.
Chattanooga’s Olan Mills Inc. was sold to Minnesota-based rival Lifetouch Inc. in November 2011.In Chattanooga, Lifetouch operates a portrait studio and photo processing facility on Perimeter Drive.
Shutterfly shares jumped in after hours trading after the purchase was announced. The Redwood, Calif.-based company said buying Lifetouch should generate significant benefits to its supply chain, manufacturing and order fulfillment.
“Shutterfly and Lifetouch, two undisputed leaders in their respective industries, are both built around the mission of helping customers share life’s joy through photos,” said Christopher North, president and chief executive officer of Shutterfly. “The two companies are uniquely well suited for one another, with similar target customers as well as complementary manufacturing capabilities. Most exciting of all is the potential to bring together Lifetouch’s unique access to millions of families who value high-quality photographic portraits with Shutterfly’s cloud photo management, product breadth, and product creation capabilities.”
The deal is expected to be completed in the second quarter of 2018.
Shutterfly announced the purchase after reporting that net income in the fourth quarter rose by more than 28 percent to $111.7 million, or $3.37 per share. Revenues for Shutterfly grew 6 percent in fourth quarter to $593.8 million.
Contact Dave Flessner at dflessner@timesfreepress.com or at 423-757-6340.