Goss-Heidelberg Deal Is Done

By: E&P Staff Goss International Corp. said it completed its acquisition of Heidelberg Web Systems Friday from Heidelberger Druckmaschinen AG. Credit Suisse First Boston and Latham & Watkins LLP advised Goss on the transaction.

By giving Goss the assets of the Heidelberg unit's newspaper and commercial web press business and the post-press products made in the U.S., the deal approximately doubles Goss's revenue base and a total of approximately 4,000 employees. The company will remain Goss International and retain the Goss brand name.

In a prepared release, Goss CEO Bob Brown called the acquired web printing and finishing equipment lines "a terrific complement to the existing Goss product range," and he welcomed Heidelberg as a new Goss shareholder.

To its global sales and service network, Goss said it is adding Heidelberg's sales and service capability "to represent Goss with respect to certain products in Mexico, Brazil, Germany, Switzerland, South Africa, South Korea and parts of Eastern Europe."

David Matlin, CEO of MatlinPatterson, Goss International's major shareholder, said his group "takes a long-term view of all investments, and this major acquisition creates a strong platform for future growth."

"We believe the combined product portfolio, global manufacturing infrastructure, team of industry professionals, innovative technology portfolio and the obvious synergy for our wider newspaper and commercial press ranges, give us a strong competitive edge for the future," Brown said in the statement.

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Clarification:
In reporting in this story that Goss International completed its acquisition of Heidelberg Web Systems, E&P wrote that the deal gives Goss the assets of the Heidelberger Druckmaschinen AG unit's newspaper and commercial web press business and the post-press products made in the United States. The wording was not meant to imply that Goss obtained those assets at no cost. Heidelberg received a 15% stake in Goss, but other terms of the deal were not disclosed.