Heidelberger to sell Gallus Group to Benpac Holding
29 July 2020: Heidelberger (Heidelberger Druckmaschinen AG) is embarking on a major realignment. Following its decision to focus on its core business of sheetfed printing, the company is selling the Gallus Group to Benpac Holding AG, the Swiss packaging business. With an agreed purchase price of some 120 million euros, Heidelberg is expecting the deal to generate earnings in the mid-two-digit million-euro range.
However, Heidelberg and Benpac will work together closely on the Gallus Labelfire digital label press. Heidelberg will continue supplying the digital printing unit (DPU) and consumables for this press, according to an official announcement.
With this buy out, Benpac assume ownership of five sites with a total of some 430 employees in Germany and Switzerland. With production facilities in Switzerland and Germany, Gallus develops and manufactures both conventional and digital narrow-web rotary label presses. The machine portfolio is complemented by a range of screen-printing plates (Gallus Screeny), decentralized global service activities, and a comprehensive selection of accessories and spare parts.
In his statement to the media, Heidelberg CEO Rainer Hundsdörfer said: “While we are selling our narrow-web rotary and rotary flexographic printing activities, we will be retaining our in-house digital expertise and, by collaborating with Benpac on the Gallus Labelfire. We will also be making further progress with the digitization of conventional presses,”
“Selling the Gallus Group is another key part of our realignment and follows on from the successes we have achieved so far during the transformation process. This a further major boost to our liquidity and Group equity will be a big help, especially during the coronavirus crisis,” said Heidelberg CFO Marcus A. Wassenberg.