By: Jim Rosenberg Goss International Corp. of Bolingbrook, Ill., and Heidelberger Druckmaschinen AG signed and executed a contract for Goss to acquire "substantially all assets associated with [Heidelberg's] newspaper and commercial web press business" and its high-volume post-press activities. The news came during the annual NEXPO Newspaper Technology Exhibition & Conference being held here through Tuesday.
The transaction is expected to close in several weeks upon completion of the remaining regulatory approval by European antitrust organizations. Financial terms were not disclosed, though Heidelberg will take a 15% stake in the new company, down from the 20% originally announced.
The acquisition will approximately double Goss' revenue and create one of the largest web offset printing press suppliers, with operations in North America, Europe and the Asia/Pacific region and approximately 4,000 employees. The deal affects about 2,000 Heidelberg employees, mostly in the United States, France and the Netherlands. Web offset sales contributed roughly 10% of Heidelberg's total sales of 3.66 billion euros in fiscal year 2003-2004.
MatlinPatterson Global Opportunities Partners, Goss International's major shareholder, will commit approximately $100 million in new capital toward integration of the companies.
Goss CEO Bob Brown said in a prepared release that "the combined product platforms, technology portfolio, global operations and team of professionals around the world provide us a great opportunity to create value for our customers."
In the same announcement, MatlinPatterson CEO David Matlin called the acquisition "a strong platform for future growth. The combination of the two complementary businesses will enhance the continued growth of Goss International."
Separately, Heidelberg CEO Bernhard Schreier called the acquisition "a step in the consolidation within this industry. Heidelberg Chief Financial Officer Herbert Meyer said that "by combining and restructuring," the companies aim for "better capacity utilization, along with optimized market penetration."
Credit Suisse First Boston and Latham & Watkins LLP advised Goss International on this transaction.
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