Cimpress has announced the sale of its photo album business Albumprinter to European private equity investor Gilde Buyout Partners.
The $92m (£70.3m) Albumprinter cash sale is expected to be completed within a month, subject to regulatory approval and meeting various customary conditions.
Headquartered in Amsterdam, Albumprinter, which trades under the brands of Albelli, Bonusprint (in the UK), Fotoknudsen and Onskefoto, was acquired by Cimpress in 2011 and proceeds of its sale will be used to drive down net debt at the group, which last week filed an operating loss of $45.7m (£34.9m).
“Cimpress chief executive Robert Keane said: “Cimpress has benefited from our investment in Albelli in multiple ways, including talent acquisition, as well as by strengthening the selection of our photo products for multiple Cimpress businesses.
“Though we have decided to sell the business so that we can deploy our capital elsewhere, we believe Albelli will be very successful under the partnership and guidance of Gilde,” he added.
In its end-of-year results, published last week, the Cimpress group, which embarked on a major restructure and ‘decentralisation programme’ at the start of the year, recorded a 19% jump in turnover to $2.1bn.
Last year the group posted operating profits of $78.2m. Acquisition charges, restructuring costs, increased investment and the end of two substantial partner agreements at Albumprinter and in its Corporate Solutions wing, were cited as contributing factors for this year's loss.
Albumprinter produces various products for Cimpress-owned Vistaprint and the businesses will continue to partner after the sale has been completed.
"We believe the sale of Albelli to Gilde Buy Out Partners will allow us to prioritise delivering even greater value to our customers, while continuing to grow as a leading B2C online European photo products company," said Albelli chief executive, Tristan Money.
"We look back fondly at the six years we were a part of Cimpress, and look forward to our continued relationship as a fulfiller to several Cimpress brands via its mass-customisation platform. We are very excited about the next chapter for Albelli, our team members and our customers."
Nikolai Pronk, partner at Netherlands-based Gilde Buy Out Partners, said: "Albelli represents a very attractive opportunity for us to invest in a leading player in the European e-commerce photo products market.
“The management team has built a very strong online B2C platform with significant further growth potential and we are delighted at the prospect of supporting them in accelerating the execution of the company's strategy."