German manufacturer of offset printing presses Heidelberger Druckmaschinen will be acquiring the Europe-based Printing Systems Group (PSG) for an undisclosed amount.
The company said that with this acquisition, Heidelberg will be able to expand its services and consumables business.
Headquartered in the Netherlands, PSG employs about 400 people in the Benelux countries and southern Europe including places like Benelux, Spain, Italy and Greece.
The company specialises in providing offset and digital machines, spare parts, consumables and services to the European graphics industry.
Heidelberger acquired the company from investment firm CoBe Capital which had earlier acquired PSG from Staples in October 2013.
CoBe Capital specialises in the acquisition and operation of non-core and underperforming business units in the Americas and Europe from leading global corporations.
As a result of the acquisition, the Heidelberger group hopes to see additional sales of around €130m.
The two companies had been official business partners since 1927. PSG is said to generate over half of its sales by selling services and consumables, which will help it meet the target criteria set by Heidelberg for a future sales structure.
Currently, Heidelberg's services and consumables account for over 40% of the total sales of the group which the company aims to increase to 50%
Heidelberg CEO Gerold Linzbach said: "PSG's strength in the services and consumables business and its outstanding access to customers are very attractive to us.
"Having eliminated unprofitable portfolio items, we're now starting to actively expand our portfolio in order to return the company to growth."
Image: Heidelberg and PSG have been official business partners since 1927. Photo: courtesy of Heidelberger Druckmaschinen AG.
