The group has sold Johler Druck to German restructuring specialist Arques Industries for Euro2.2m (1.5m).
St Ives bought Johler 10 years ago, but performance suffered when the German economy nose-dived.
The operating loss at the company in the year to 30 July 2004 was 935,000 on sales of around 17m.
Johler Druck had net assets of 9.4m so St Ives will take a 7.9m hit on the sale, together with an exceptional charge of 5.9m in goodwill previously written off to reserves. "A business is valued on its earning potential. Depending on your view this is not a bad price in the circumstances," said finance director Ray Morley. "We have tried to make the best of it for some time and over the last two-to-three years reduced its losses and made it saleable."
Arques Industries said it wanted to "contribute to the consolidation of the web offset market in Germany" with the buy. It sees Johler's offering as an ideal supplement to that of Colordruck Pforzheim, which it acquired at the end of last year.
St Ives also announced proposals to consolidate its point-of-sale operations at the Redditch base of recent acquisition SP Group this week.
This move would mean the loss of around 70 jobs at the former Displaycraft operation in Crayford, which shares the site with St Ives Multimedia.
"We are bursting at the seams in Crayford because multimedia is growing," explained divisional managing director Steve Hart. "The proposal is to move all the PoS and screen print manufacturing to SP.
"Jobs will be created in Redditch and we're hoping a good number of our PoS staff relocates," Hart added.
Eventful times at St Ives
April 05 Sells Johler Druck in Germany, announces plan to consolidate UK PoS business
February 05 Enters 90-day consultation over closure of Caerphilly web plant, together with closure of Bristol sheetfed plant and Leeds bindery. Total cost expected to be 13m
September 04 Buys SP Group for up to 37m
February 04 Announces relocation of Tunbridge Wells multimedia op to Crayford at cost of 4m, along with an 8m hit on the closure of Case-Hoyt in America
Story by Jo Francis
