Company provides binding offer to Siegwerk for its web offset business.
February 17, 2016
by Canadian Packaging staff
Headquartered in Luxembourg, Flint Group—a global solutions provider to the packaging and print media industries—has issued a binding offer to German firm Siegwerk to acquire its web offset business.
This offer includes the transfer of all technical expertise and product portfolios relating to Siegwerk’s Heatset and Newsink product lines.
The Flint Group is dedicated to bringing colour and function to the printing and packaging products that consumers touch, see and use each day. Flint group with locations around the world in Asia/Pacific, Latin America, Europe and North America, including Canada, had 2014 revenues of €2.1-billion (CDN ~ $3.2-billion).
“We are very excited by this transaction,” says Flint Group chief executive officer Antoine Fady. “This investment confirms our long term commitment to customers in these key market segments and re-enforces our unique offering to the market of inks, press room chemicals and transfer media products.
“This commitment guarantees a long term supply position for our Heatset and News Ink customers and further enhances our strong focus on the Print Media and Packaging markets across the world,” he says.
Siegwerk’s decision to sell its web offset business is in line with its strategy to focus on its core business in packaging printing, which is growing globally, and to further build its market leadership in inks and coatings for labels and flexible packaging where the company sees significant potential.
“To ensure the lasting success of our company, we need to clearly devote our resources to serving the markets of tomorrow. We will do so by focusing on our core packaging printing business,” notes Siegwerk chief executive officer Herbert Forker. “It is here where we see significant growth opportunities particularly within the strongly accelerating Asian markets.”
All 76 permanent employees in Siegwerk’s web offset business will be offered a transfer into other areas within their Siegburg site with Flint Group intending to employ a core team from Siegwerk’s web-offset business after the sale.
The Siegwerk publication gravure business, which manufactures printing inks for high-end magazines, catalogs and commercials, will be continued. Its long-standing expertise and high market share of around 45 percent in Europe give Siegwerk an exceptionally strong market position in this area.
Siegwerk will work closely with Flint Group to ensure that any handover of business is completed without disruption and that the same products and services for the customers of both companies are maintained throughout.
Completion is still subject to customary closing conditions, including approval by the competition authorities. Until such time as approval is granted to proceed, Flint Group and Siegwerk will remain separate entities and continue to manage their organizational affairs independently and without impact to customers, employees or suppliers.
Flint Group is privately-owned by Goldman Sachs Merchant Banking Division in partnership with Koch Equity Development LLC, a subsidiary of Koch Industries, Inc.
For more information on Flint Group, visit www.flintgrp.com.