Product category:
Printing Pre-Press Systems and Materials (Repro, Platemakers, CTP, Workflow, Document Management, Design Software, etc.)
News Release from: EskoArtwork
Edited by the Printingtalk Editorial
Team on 06 August 2007
Esko-Artwork Systems Deal Forms EUR180m
Business
Esko and Artwork Systems are to combine their operations, which will result in a new company with estimated 2007 revenues of EUR180 million and a combined workforce of almost 1,000 people.
The companies bleiee that the move will stregnthen the market leadership of each business in packaging and printing pre-production products and services in Europe, the Americas and the Asia Pacific region The three principal shareholders of Artwork Systems Group signed an agreement to sell their shares in the company to Esko
This article was originally published on Printingtalk on 14 Aug 2008 at 8.00am (UK)
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The transaction will enable the combination of Artwork Systems' operations with those of Esko, a group controlled by the Danish private equity fund Axcel.
The sale relates to 13,074,483 shares in Artwork Systems Group, currently held by the respective holding companies of the founders of Artwork Systems, Guido Van der Schueren, Peter Denoo and Bart Denoo.
The shares sold represent a 76.69 per cent majority stake in the business.
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The shares are being sold at a price per share of EUR11.50 in cash, valuing Artwork Systems at EUR196 million.
It is hopes that the deal will be completed on August 9.
Following the acquisition of control Esko will launch a mandatory public offer for all remaining shares and outstanding warrants of Artwork Systems Group at a price of EUR11.50 per share.
Subsequent to the completion of the offer, after re-opening if any, Esko will launch a buy-out offer, provided it has acquired 95 per cent of the share capital of Artwork Systems Group.
The two companies believe that the rationale for the transaction is founded upon a better utilisation of each company's complementary strengths in the packaging and commercial printing market segments, complementary 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 option and provides the optimal basis for securing future growth and development of Artwork Systems.
Carsten Knudsen, who is currently the chief executive officer of Esko-Graphics, will become the CEO of the combined group.
Guido Van der Schueren, who is the chairman of Artwork Systems Group, will become the chief commercial officer of the new combined business leading the 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, Guido Van der Schueren's holding company, of the proceeds from the sale of its shares in Artwork Systems Group Van der Schueren will become a significant shareholder of the combined entity, next to Axcel and management members.
Guido Van der Schueren said: "Starting from a common background with pre-press software for packaging specialists, Artowrk Systems and Esko each have developed in to broader and complementary application areas.
Our combined portfolio of products and services offers appropriate systems for virtually any customer in packaging, commercial printing, and office and business publishing.
Bringing together our expertise and innovative strength opens up significant growth opportunities for our customers and employees alike." Peter Denoo, founder and chief executive officer of Artwork Systems, added: "The co-founders of Artwork Systems have spent a large part of their lives establishing and developing the company as a leader in the pre-press software industry.
However, it is clear that consolidation is rapidly picking up and setting the scene also in this market and it is important for the company's future to be part of this trend." Bart Denoo, founder and chief software architect of Artwork Systems, commented: "The combination of the two businesses is the ideal solution for Artwork Systems to secure growth and continued global leadership for the years to come.
The combination will offer a broader and deeper products and services proposition to our clients." Carsten Knudsen, explained: "This is a significant milestone in the consolidation of suppliers to the printing and publishing industry.
Especially in the packaging segment, bundling the expertise, products and customer networks of both companies creates new and exciting opportunities for supply chain partners to improve collaboration and facilitate integration.
Our attention now goes first and foremost to protect our respective customers' investments in our products and to work closely with them to respond to their future requirements." Chairman of Esko, Jean - Claude Deschamps, added: "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.
Esko's board stands firm behind the executive management board to support what we hope to be an inspiring example of entrepreneurship." Vilhelm Hahn-Petersen, a director of Axcel, Esko's controlling shareholder, also said: "Since the start of our partnership with Esko in 2005 we have seen this company consistently growing its revenues, improving its profitability and expanding its horizons.
A smaller acquisition earlier this year was a first indication of the company's ambitions.
Today's announcement marks a major milestone in our support of the industry's consolidation.
We are looking forward to work with the management teams and staff to further execute our strategic development plans.".
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