Heidelberg Strengthens Its Position in Flexographic Printing
09/16/1999
Heidelberg/St. Gallen - Heidelberger Druckmaschinen AG
(Heidelberg), the world market leader in print and publishing
solutions, has acquired a 30 percent stake in Gallus Holding AG
(St. Gallen, Switzerland).
When the contract was officially signed, the two companies also agreed to cooperate closely in marketing, sales and technology. Gallus develops and manufactures web presses, based in particular on flexographic, letterpress and screen printing technologies. The Group's products are primarily aimed at label printers, and it is the international market leader which sets quality standards in this field.
The Gallus Group was founded in 1923, and today operates development and production facilities at its two major plants in St. Gallen, Switzerland (Gallus Ferdinand Rüesch AG) and Langgöns-Oberkleen, Germany (Arsoma Druckmaschinen GmbH). In the fiscal year 1998, its 500 employees achieved sales of CHF 183 million (approx. 114 million Euro).
Gallus products will mostly continue to be sold via the existing channels, although sales of certain Gallus products and sales in certain regions will in future be handled by Heidelberg. This will enable Heidelberg to extend its existing portfolio and increase its range of products for the growing label and packaging printing market.
At the same time, the world market leader in offset presses will also gain access to the increasingly important technology of flexographic web printing. This is particularly well suited to printing foil-like materials such as self-adhesive labels or flexible packaging.
"The demand for flexographic web presses from our customers in the packaging and label printing sector is growing from year to year", explains Hartmut Mehdorn, Chairman of the Management Board at Heidelberg. "We estimate the world market for these products to be worth around 800 million Euro, some 250 million Euro of which is within the EU."
"We are attracted by Heidelberg's strategy of providing customers from all parts of the printing industry with solutions under one roof - from data input through to the finished product", says Ferdinand Rüesch, Chairman of the Board of Directors of Gallus Holding AG. "We see Heidelberg as an ideal partner with whom we can meet the challenge of globalization."
Pending the approval of the supervisory boards of both companies and the relevant antitrust agencies, the acquisition of Heidelberg's share in Gallus should be finalized by the end of the year. The companies have agreed to keeping the conditions of the transaction confidential.
When the contract was officially signed, the two companies also agreed to cooperate closely in marketing, sales and technology. Gallus develops and manufactures web presses, based in particular on flexographic, letterpress and screen printing technologies. The Group's products are primarily aimed at label printers, and it is the international market leader which sets quality standards in this field.
The Gallus Group was founded in 1923, and today operates development and production facilities at its two major plants in St. Gallen, Switzerland (Gallus Ferdinand Rüesch AG) and Langgöns-Oberkleen, Germany (Arsoma Druckmaschinen GmbH). In the fiscal year 1998, its 500 employees achieved sales of CHF 183 million (approx. 114 million Euro).
Gallus products will mostly continue to be sold via the existing channels, although sales of certain Gallus products and sales in certain regions will in future be handled by Heidelberg. This will enable Heidelberg to extend its existing portfolio and increase its range of products for the growing label and packaging printing market.
At the same time, the world market leader in offset presses will also gain access to the increasingly important technology of flexographic web printing. This is particularly well suited to printing foil-like materials such as self-adhesive labels or flexible packaging.
"The demand for flexographic web presses from our customers in the packaging and label printing sector is growing from year to year", explains Hartmut Mehdorn, Chairman of the Management Board at Heidelberg. "We estimate the world market for these products to be worth around 800 million Euro, some 250 million Euro of which is within the EU."
"We are attracted by Heidelberg's strategy of providing customers from all parts of the printing industry with solutions under one roof - from data input through to the finished product", says Ferdinand Rüesch, Chairman of the Board of Directors of Gallus Holding AG. "We see Heidelberg as an ideal partner with whom we can meet the challenge of globalization."
Pending the approval of the supervisory boards of both companies and the relevant antitrust agencies, the acquisition of Heidelberg's share in Gallus should be finalized by the end of the year. The companies have agreed to keeping the conditions of the transaction confidential.
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