Esko and Artwork Systems to join forces

Esko and the three principal shareholders of Artwork Systems have reached an agreement whereby Esko and Artwork Systems will combine their operations. The resulting new entity, with estimated 2007 revenues in excess of EUR 180 million and a combined workforce of close to 1,000 professionals, consolidates the market leadership of both companies in packaging and printing pre-production products and services in Europe, the Americas and Asia Pacific.

On August 2, the three principal shareholders of Artwork Systems Group NV signed an agreement to sell their shares in Artwork Systems Group NV to Esko NV. The transaction enables the combination of the operations of Artwork Systems with those of Esko, a group controlled by the Danish private equity fund Axcel.  

The strategic rationale for the transaction is founded upon a better utilization of each company’s complementary strengths in the packaging and commercial printing market segments, complementary expert sales and support channels and global customer bases.

The three founders of Artwork Systems have expressed their support for the combination as they believe that joining forces with ESKO is the right solution and provides the optimal basis for securing future growth and development of Artwork Systems.

Carsten Knudsen, who is currently the CEO of Esko-Graphics A/S, will become the CEO of the combined group. Guido Van der Schueren, who is currently the chairman of the board of directors of Artwork Systems Group NV, will become the chief commercial officer leading the new group’s integrated marketing and sales operations. Together with Carsten Knudsen, Guido Van der Schueren will form the executive management board, and both will serve as executive directors on the supervisory board of Esko. Through a partial investment by Parana, the holding company of Guido Van der Schueren, of the proceeds from the sale of its shares in Artwork Systems Group NV, Guido Van der Schueren will become a significant shareholder of the combined entity, next to Axcel and Management members. 

Guido Van der Schueren, founder and chairman of the board of Artwork Systems, said: ‘Starting from a common background with pre-press software for packaging specialists, Artwork Systems and Esko each have developed into broader and complementary application areas. Our combined portfolio of products and services offers appropriate solutions for virtually any customer in packaging, commercial printing and office/business publishing. Bringing together our expertise and innovative strength opens up significant growth opportunities for our customers and employees alike.'

Jean–Claude Deschamps, chairman of the Esko board, said: ‘Bringing together two highly knowledgeable and creative teams of graphic arts professionals, each having built a leading market position in the publishing and packaging pre-production markets, signals the start of a new era of innovation. The new combined entity has all it takes to become a landmark in this industry which begs for ever-increasing productivity and speed of execution.’

ABN Amro and Monard D’Hulst acted as advisors to Esko; ING and Baker & McKenzie acted as advisors to Artwork Systems.