Swiss investment firm JBF Finance already holds around 53% of Bobst shares. It is controlled by shareholders with family connections to Joseph Bobst, who founded the firm in 1890.
JBF’s cash offer is CHF78 (£67) per share, a premium of 22% on the average price over the past four weeks.
JBF would then de-list Bobst, which it said would allow the group to “focus on long-term and sustainable growth”.
“This offer will give the company the appropriate conditions to deploy a long-term strategy, to execute its digital transformation, and to maintain its strong Swiss industrial activities,” JBF stated.
Bobst’s board of directors is in favour of the transaction “and welcomes the possibility for shareholders to tender their shares at a premium in these uncertain times”.
Current CEO Jean-Pascal Bobst is the fourth generation of the family to lead the business.
The offer was announced today (25 July) alongside Bobst’s half-year results. The Switzerland-headquartered manufacturer makes machinery for the printing and converting of labels, flexible packaging, cartons and corrugated packaging.
The group acquired Italian gravure press specialist Cerutti at the end of last year.
Sales were up 15.7% at CHF772.5m, while orders rose by 8%. Operating profit rose from CHF15m to CHF29m.
Bobst said it expected good second half due to its high order backlog and service activities, but flagged “significant risks” that could affect the full year.
“These are mainly due to the very tense supply chain situation and material price increases as well as insufficient global transportation capacities, but also the uncertain geopolitical situation,” the group stated.
Supply chain issues also crimped potential sales in H1.
“The availability of several specific components needed to assemble our equipment deteriorated compared to the second half of 2021. The missing parts led to inefficiencies and rework in all our production sites and the Covid-shutdown in China created additional under-absorption in our Chinese factories.”
Russia’s invasion of Ukraine also impacted profitability at both its Printing & Converting and Services & Performance business units. Bobst has suspended its business with customers in Russia due to the embargos against the country.
Bobst had sales of CHF1.65bn last year and employs more than 5,800 people around the world.
A prospectus for the share offer will be published in early September, with a November timeframe expected for settlement.
