11.25.19
Heidelberger Druckmaschinen AG (Heidelberg) sold its Hi-Tech Coatings division for coatings used by the packaging, labeling, and printing industries to Innovative Chemical Products Group’s Industrial Solutions Group division, a global provider of packaging, labeling, and specialty clear coatings based in Itasca, IL.
The divestiture is a part of Heidelberg’s initiative to focus on core activities and portfolio adjustments.
Hi-Tech Coatings develops and produces more than 1,000 environmentally compatible products and formulations, primarily water-based and UV-based coatings, at its sites in Aylesbury, UK, Zwaag, Netherlands, and Taylor, MI.
With the sale, three sites and a total of around 60 employees will be transferred to ICP’s ISG division.
The purchase price amounts to €38.5 million ($42.6 million).
Heidelberg expects the transaction to generate non-recurring income of around €20 million.
The final terms will be determined at the time of closing.
"As part of our portfolio analysis and concentration on our core activities, we have concluded that we are withdrawing from our own production of packaging and printing coatings," said Rainer Hundsdörfer, CEO of Heidelberg. "We will use the funds released as a result to push ahead with strategic investments for the future on the path to our digital transformation."
"The strategic partnership with ICP Group will enable us to offer our customers an expanded portfolio of coatings," said Prof. Dr. Hermann, member of the Management Board of Lifecycle Solutions. "Above all, we want to further increase the proportion of consumables through our growing contract business."
The divestiture is a part of Heidelberg’s initiative to focus on core activities and portfolio adjustments.
Hi-Tech Coatings develops and produces more than 1,000 environmentally compatible products and formulations, primarily water-based and UV-based coatings, at its sites in Aylesbury, UK, Zwaag, Netherlands, and Taylor, MI.
With the sale, three sites and a total of around 60 employees will be transferred to ICP’s ISG division.
The purchase price amounts to €38.5 million ($42.6 million).
Heidelberg expects the transaction to generate non-recurring income of around €20 million.
The final terms will be determined at the time of closing.
"As part of our portfolio analysis and concentration on our core activities, we have concluded that we are withdrawing from our own production of packaging and printing coatings," said Rainer Hundsdörfer, CEO of Heidelberg. "We will use the funds released as a result to push ahead with strategic investments for the future on the path to our digital transformation."
"The strategic partnership with ICP Group will enable us to offer our customers an expanded portfolio of coatings," said Prof. Dr. Hermann, member of the Management Board of Lifecycle Solutions. "Above all, we want to further increase the proportion of consumables through our growing contract business."
