US-based X-Rite, which has spent $480m (£243m) on acquisitions since 2006, has seen its share price fall from more than $14 a share last autumn, to less than $3 (at the time of writing).
The nosedive began when X-Rite reported a third-quarter loss last November. This accelerated in April when the company forecast slower sales and announced a default on one of its loan agreements.
Shares took a further battering on 25 April, dropping 39% to $2.68 when the company revealed that it was in negotiations with lenders, following the termination of a loan agreement with Goldman Sachs.
X-Rite chief financial officer Lynn Lyall said: "We still think we have a very solid performing business that has good cash flow. [However] we have a capital structure issue that needs to be adjusted.
"To this date, the business is operating as usual, in the sense its customer base is intact. We still have strong sales. They're a little soft this year, but we think that's as much economic recession as anything."
X-Rite, which spent $180m (£89.7m at the time) on Pantone in August 2007, and $300m on GretagMacbeth-owner Amazys Holding the previous July, expects to confirm a 3% decline in sales in its first-quarter earnings this week.
The company, which is the largest colour-matching specialist in the world following its acquisition of rivals GretagMacbeth and Pantone, is expected to make job cuts in order to counter its declining sales.
X-Rite shares fall following 243m acquisitions programme
X-Rite has experienced a backlash from its aggressive acquisition programme of the last two years, as recent loan defaults have led to a massive fall in its share price.