Domino Printing Sciences has acquired the remaining 80.65 percent of the equity of Graph-Tech, taking its holding to 100 percent.
Based in Switzerland, Graph-Tech designs, manufactures and sells highly innovative digital inkjet equipment including advanced digital press printers and PC based controller systems.
Domino became a shareholder in Graph-Tech in 1999. Domino said, ‘Since that time, Graph-Tech has become an increasingly important partner to Domino. It now supplies Domino’s K-Series product range and the new N600i full color 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 GBP) with additional contingent consideration up to a maximum of CHF 10m (6.7m GBP). Payment will be satisfied from Domino’s cash resources. An amount of CHF 3.1m (just over two million GBP) 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.
Sellers Piero Pierantozzi, Walter Urech, Marcel Galliker and Peter Brandenberger will remain employed by Graph-Tech on long term contracts. An additional seller, Markus Portmann will leave the company and become a third party reseller of Graph-Tech products in North and South America.
Nigel Bond, group managing director of Domino commented, ‘Graph-Tech has been a long term partner of Domino. We have built a profitable digital printing business based on Graph-Tech’s technology. 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 capitalize on the growth in use of digital printing technology, in both printing and packaging applications.’
Pictured: Nigel Bond, group managing director, Domino