Shanghai Electric will Become the Second Largest Shareholder of Goss International
DURHAM, NH—06/12/2009—Shanghai Electric (Group) Corp. (SEC) and the shareholders of Goss International Corp., including majority shareholder MatlinPatterson Global Opportunities Partners, have reached an agreement for the utility and equipment manufacturing conglomerate to become the second largest shareholder of the printing equipment supplier by acquiring newly issued shares of Goss International preferred stock. This transaction is currently under governmental review for final approval and is subject to other customary conditions to closing.
Terms of the transaction have not been disclosed.
Shanghai Electric and Goss International have a successful, longstanding relationship through Shanghai Goss Graphic Systems, a joint venture company of Goss International and the SEC subsidiary Shanghai Electric Printing and Packaging Machinery Group (SPPM). The joint venture company was established in 1993 and produces several Goss web press models for the global market.
“The Goss International organization delivers products with superior levels of innovation and value to printers and publishers throughout the world,” explains Chen Daxiong, chairman of SPPM. “We are committed to continuing this mission and investing resources to enhance Goss International’s current market and technology leadership positions. We have been working together successfully for many years and are excited about the opportunity to increase our involvement in the business.”
“Shanghai Electric has an industrial focus, a global outlook and a strong commitment to the print sector,” according to Goss International CEO Jochen Meissner. “The investment in Goss International will bring additional strength and financial resources to our business. This will further enhance our ability to innovate, execute and deliver value to customers through a unique, worldwide manufacturing and support platform that includes operations in Asia, Europe and the United States.”
Goss International supplies web offset presses and finishing systems for newspaper, magazine, catalog, direct mail and other printing applications. The company generated more than $3.3 billion in sales in the three-year period from 2006 to 2008.
Shanghai Electric (Group) Corporation is one of the largest equipment manufacturing groups in China and controls a number of domestic and overseas listed companies, including Shanghai Electric Group Company Limited, Shanghai Mechanical and Electrical Industry Company Limited, Shanghai Highly (Group) Company Limited, Shanghai Automation Instrumentation Company Limited and Shanghai Prime Machinery Company Limited. Through its listed subsidiaries, SEC operates in the industries of power generation and transmission, mechanical and electronic systems, heavy machine tools, transportation equipment, environmental protection equipment, automatic instrumentation, and refrigerating compressors among many others.