Product category:
Printing materials, equipment and services
News Release from: EskoArtwork
Edited by the Manufacturingtalk Editorial
Team on 16 September 2005
Esko-Graphics' Packaging Business
Ownership Moves
Esko-Graphics has announced that its shareholder, Kirkbi, has agreed with leading Danish private equity company Axcel to transfer the ownership of Esko's packaging activities to Axcel.
Esko-Graphics has announced that its shareholder, Kirkbi, has agreed with leading Danish private equity company Axcel to transfer the ownership of Esko's packaging activities to Axcel The companies have agreed not to disclose terms and conditions for the transaction, which is expected to close by the end of September
This article was originally published on Manufacturingtalk on 29 Aug 2008 at 8.00am (UK)
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Axcel is a leading Danish industrial investment company, which was established in 1994.
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Under the agreement, Kirkbi retains the ownership of Esko-Graphics' small-format offset activities.
Kirkbi continues to support those operations whilst actively looking for an industry partner to further develop that business, in cooperation with the current OEM and distribution partners.
Esko-Graphics' main business is in the development, assembly, distribution and support of software, equipment and services used to create and manufacture packaging and display materials.
Typical customers include brand owners, retailers, packaging designers and printers and converters.
The company employs around 700 people worldwide.
It has its operational headquarters in Gent, Belgium with research and development, manufacturing and other facilities located in Belgium, Denmark, Germany, Norway, the United States and the Czech Republic.
The company has local sales and support organisations in a number of countries throughout Europe, North America and the Asia-Pacific region, including Japan and China.
Its products are also distributed through a global network of resellers and distribution partners.
Since 2002, Esko-Graphics has successfully focused its strategy towards delivering value-added products across the complete packaging supply chain.
Esko-Graphics is a specialist in packaging pre-production workflow software, flexo computer-to-plate imaging devices and sample-making and short-run production machines for the packaging market.
It also offers workflow automation software for commercial printers and provides its customers with a broad range of professional services, all of which are growth segments with annual market growth rates ranging between five per cent - 20 per cent, said the company.
Esko-Graphics' packaging business has been profitable for the last few years, in contrast to the discontinued loss-giving offset CTP.
For the full year 2005, Esko-Graphics said that it expects net revenues of over 110m Euros, an increase of 12 per cent over 2004.
Kim Graven-Nielsen, president and chief executive officer of Esko-Graphics, said: "Over the last three years, we have developed Esko-Graphics from a newly merged company, operating under challenging economic and business conditions, in to a strong, dynamic and profitable company prepared for further growth and expansion.
The support and commitment of our shareholder Kirkbi has been essential to make this transformation possible." Bent Pedersen, managing director of Kirkbi, commented: "Kirkbi has over the past year opted to adjust its strategy and divested its direct investments such as Kompan and Glud and Marstrand and now Esko-Graphics.
Kirkbi and Esko-Graphics believe that a private equity investment offers the best platform for further development.
Kirkbi has chosen Axcel because Axcel has the resources and the expertise to continue Esko-Graphics' growth and expansion.
The parties have further agreed that Kirkbi will participate in Esko-Graphics' future profit on final exit." And Christian Frigast, Axcel's managing partner, added: "Axcel is excited to welcome Esko-Graphics to its group of partner companies.
We have identified many attractive opportunities for Esko-Graphics, a recognised leader in an industry that more than ever is driven by globalisation and consolidation.
We will closely interact with Esko-Graphics' senior management and provide the support and the security required for a successful implementation of an ambitious development strategy." In outlining the company's immediate plans, Kim Graven-Nielsen, said: "With this transfer of ownership, my task of guiding Esko-Graphics through a difficult transformation phase and laying the foundation for its future has come to an end.
It is, therefore, my pleasure to announce that the current chief financial officer and chief operating officer, Carsten N Knudsen, has agreed to become Esko-Graphics' chief exeuctive officer from the time of closing." Jean-Claude Deschamps, who will continue as chairman of Esko-Graphics, added: "Kirkbi and Esko-Graphics are proud of what has been accomplished under Kim's leadership.
We owe Kim many thanks for his efforts and achievements.
As an equally strong contributor to the company's development, Carsten Knudsen is the logical choice to provide a natural continuation of this process." Carsten Knudsen (44) joined Esko-Graphics in October 2002 as chief financial officer and chief operating officer and member of the executive management board.
Before that, he held executive management and chief financial officer positions with ISS and Maersk/A.P.Moller in Spain, Singapore, the USA and Denmark.
He holds a Bachelor of Commerce and an MBA.
Knudsen said: "All of us at Esko-Graphics are looking forward to continuing the strategy laid out over the last three years to extend our leadership in packaging pre-production, with Axcel as our new business and capital partner.".
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