Heidelberg Initiates Further Reorganization; Announces Financial Targets, Site ConsolidationJune 11, 2014
"In returning to profitability, we have reached a first important milestone," said Heidelberg CEO Gerold Linzbach. "We are now starting the next stage of the Group's reorganization so as to achieve a sustained increase in corporate value. This involves making acquisitions in growth segments, scaling down areas of business with weak margins, and cutting structural costs in order to further improve profitability," he added.
Strategic reorientation supported by new anchor investor
Heidelberg is further developing its digital portfolio with the planned complete takeover of the Gallus Holding AG. In fall this year, Heidelberg and Gallus will be unveiling a new digital printing system for the label market based on Fujifilm technology. Ferdinand Rüesch will also become a new strategic anchor investor of the company by acquiring around 9 percent of Heidelberg shares in return for the Gallus stake. At the same time, Heidelberg is strengthening its capital structure, which will support the company's strategic reorientation.
"Our aim in acquiring Gallus is to achieve fast and profitable growth in the digital label sector," noted Linzbach. "What's more, a strategic investor with experience in this sector will ensure the stability of both the shareholder and capital structures."
Acquisitions in growth areas—digital, services and consumables
Heidelberg sees particularly good opportunities for growth in the expansion of its activities involving services and consumables, which benefit from strong margins. Following the successful takeover of a coating manufacturer, discussions on a further acquisition are currently under way.
As part of the collaboration with Fujfilm, an OEM agreement to supply platesetters (CtP) has also been concluded. Fujifilm will market Heidelberg platesetters under its own name in future, while Heidelberg has taken over some European sales activities for Fujifilm printing plates. As regards services, the marketing of new service products has gotten off to a successful start. The portfolio now also includes consulting, which extends beyond simply providing technical services and is intended to achieve a concrete, measurable improvement in customer results.