Heidelberg bolsters services and consumables ops with PSG buy
Monday, March 9, 2015
Heidelberg signed an agreement last week to acquire European Printing Systems Group (PSG), for an undisclosed sum.
Heidelberg said the acquisition will significantly expand its services and consumables business. The firm’s medium-term goal is for services and consumables to account for over 50% of its total sales. The figure currently stands at around 40%.
PSG, which is headquartered in the Netherlands, consists of a number of subsidiaries based around Europe; Plantin and Grafimat in Belgium, BTI-Hellas in Greece, Macchingraf in Italy, Tetterode in the Netherlands and Hartmann in Spain.
The group, which has around 400 employees and a turnover of €220m (£159m), already generates more than half of its sales through the sale of services and consumables. Heidelberg products account for the majority of its equipment sales.
“PSG’s strength in the services and consumables business and its outstanding access to customers are very attractive to us,” said Heidelberg chief executive Gerold Linzbach.
“Having eliminated unprofitable portfolio items, we’re now starting to actively expand our portfolio in order to return the company to growth.”
Heidelberg said the acquisition will result in additional sales of around €130m and that the venture marks a further milestone in its strategy of further promoting stable, high-margin services and consumables business.
This has involved creating broader market access by taking over dealership networks and gradually expanding its product portfolio by acquiring local consumables manufacturers.
In December the company acquired Belgian consumables business BluePrint Products, in a deal which it referred to at the time as the start of a "more ambitious phase" of acquisition-led expansion.