Domino Printing Sciences has acquired Graph-Tech, the Swiss company that designs, manufactures and sells innovative digital ink jet equipment, including advanced digital presses and PC-based controller systems.
Already a minor stakeholder in the company, Domino has secured the remaining 80.65% to become the 100% owner of the company. The initial purchase price is CHF18.63m (£12.4m) with additional contingent consideration up to a maximum of CHF10m (£6.7m) payable to the extent revenue and unit sales targets are met over a three year period. Payment will be satisfied from Domino’s cash resources.
Domino originally became a shareholder in Graph-Tech in 1999, and 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 colour digital label press as well as production line controllers and other digital printing equipment.
‘Graph-Tech has been a long-term partner of Domino. We have built a profitable digital printing business based on Graph-Tech’s technology,’ said Nigel Bond, group managing director of Domino Printing Sciences. ‘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 capitalise on the growth in use of digital printing technology, in both printing and packaging applications.’
This latest acquisition follows Domino’s earlier purchase of the MikroJet Systems equipment sales function in May 2012. MikroJet, based in Hamburg, designs manufactures and supplies ink jet addressing and personalisation systems as well as mail handling solutions primarily to German-speaking territories.