Heidelberger Druckmaschinen AG (Heidelberg) has sold its Hi-Tech Coatings division for coatings used by the packaging, labeling, and printing industries to Innovative Chemical Products Group’s (ICP Group) Industrial Solutions Group (ISG) division, a leading global provider of packaging, labeling, and specialty clear coatings based in Itasca, IL, USA. The divestiture is a part of Heidelberg’s initiative to focus on core activities and portfolio adjustments. Hi-Tech Coatings develops and produces over 1,000 environmentally compatible products and formulations, primarily water-based and UV-based coatings, at its sites in Aylesbury / UK, Zwaag / Netherlands, and Taylor, MI / USA. With the sale, three sites and a total of around 60 employees will be transferred to ICP’s ISG division. The transaction also established a strategic partnership between Heidelberg and ICP Group to ensure Heidelberg’s future sales of its coating portfolio to its customers. The purchase price amounts to EUR 38.5 million. Heidelberg expects the transaction to generate non-recurring income of around EUR 20 million.
The final terms will be determined at the time of closing. Subject to customary closing conditions, the sale is expected to be effective in 2019.
"As part of our portfolio analysis and concentration on our core activities, we have come to the conclusion that we are withdrawing from our own production of packaging and printing coatings," said Rainer Hundsdörfer, CEO of Heidelberg. "We will use the funds released as a result to push ahead with strategic investments for the future on the path to our digital transformation."
"The strategic partnership with ICP Group will enable us to offer our customers an expanded portfolio of coatings," said Prof. Dr. Hermann, member of the Management Board of Lifecycle Solutions. "Above all, we want to further increase the proportion of consumables through our growing contract business. This is where we will continue to trust in Hi-Tech Coatings and ICP Group’s products in the future."
“We are excited to welcome the employees of Hi-Tech Coatings to the ICP family and to enter into this long term, strategic partnership with Heidelberg,” said Doug Mattscheck, CEO of ICP Group. “We’re looking forward to providing Heidelberg and Hi-Tech Coatings’ customers with exceptional service, an expanded product offering, and an expanded commitment to innovation and growth going forward.”
Under the brand "Saphira", Heidelberg has been offering a broad portfolio of high-quality consumables for over 10 years now, both for everyday print jobs and for special applications right through to all production requirements in prepress, press and post-press. This continues to include the in-house production of printing chemicals as part of the growth strategy in this area. All consumables bearing the Saphira name have been optimized and tested specifically for use in Heidelberg solutions. They help users to take advantage of the full range of functions offered by their presses and achieve high-quality print results. At the same time, Saphira products meet all industry standards for environmental protection and make a significant contribution to safeguarding the investment in the equipment used. In addition to Saphira products, Heidelberg continues to offer consumables from other suppliers under their own brands.
This press release contains forward-looking statements based on assumptions and estimations by the Management Board of Heidelberger Druckmaschinen Aktiengesellschaft. Even though the Management Board is of the opinion that those assumptions and estimations are realistic, the actual future development and results may deviate substantially from these forward-looking statements due to various factors, such as changes in the macro-economic situation, in the exchange rates, in the interest rates, and in the print media industry. Heidelberger Druckmaschinen Aktieng-esellschaft gives no warranty and does not assume liability for any damages in case the future development and the projected results do not correspond with the forward-looking statements contained in this press release.
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