Domino acquires remaining 80.65% of Graph-Tech equity
Domino Printing Sciences has announced the acquisition of the remaining 80.65% of the equity of Graph-Tech AG, taking Domino’s holding in Graph-Tech to 100%. Based in Switzerland, Graph-Tech designs, manufactures and sells innovative digital inkjet equipment including advanced digital press printers and PC-based controller systems.
Domino originally became a shareholder in Graph-Tech in 1999 and since then Graph-Tech has become an increasingly important partner to Domino. It now supplies Domino’s K-Series product range and the new N600i full colour digital label press as well as production line controllers and other digital printing equipment.
The initial purchase price is CHF 18.63m (approximately £12.4m) with additional contingent consideration up to a maximum of CHF 10m (£6.7m). Payment will be satisfied from Domino’s cash resources. An amount of CHF 3.1m (£2.1m) has been withheld from the initial sum; payment of this is subject to the shareholders remaining employed in the business over a three-year period. The additional contingent consideration is payable to the extent revenue and unit sales targets are met over a three-year period.
The sellers are Piero Pierantozzi, Walter Urech, Markus Portmann, Marcel Galliker and Peter Brandenberger. All except for Markus Portmann will remain employed by Graph-Tech on long term employment contracts. Markus Portmann will leave the company and will become a third party reseller of Graph-Tech products in North and South America.
“We have built a profitable digital printing business based on Graph-Tech’s technology,” comments group managing director Nigel Bond. “The timing of our acquisition of the remaining shares in the business coincides with the successful introduction of our new digital label press products. We believe these products combined with planned new developments will provide us with significant opportunity to capitalise on the growth in use of digital printing technology, in both printing and packaging applications.”
Domino Printing Sciences
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