Heidelberg has sold its Hi-Tech Coatings division for coatings used by the packaging, labelling and printing industries to Innovative Chemical Products (ICP) Group, as the equipment manufacturer continues to focus on its digital transformation objectives.
Hi-Tech Coatings develops and produces over 1,000 environmentally compatible products and formulations, primarily water-based and UV-based coatings, at sites in the UK, the Netherlands and the US. These three sites and a total of around 60 employees are transferred to ICP Group’s Industrial Solutions Group (ISG) division in the sale. ISG is a global provider of packaging, labeling and specialty clear coatings based in Itasca, Illinois.
The purchase price amounts to €38.5 million. Heidelberg expects the transaction to generate non-recurring income of around €20 million.
The transaction also establishes a strategic partnership between Heidelberg and ICP Group to ensure Heidelberg’s future sales of its coating portfolio to its customers.
Professor Dr Hermann, member of the Heidelberg management board responsible for lifecycle solutions, said, ‘The strategic partnership with ICP Group will enable us to offer our customers an expanded portfolio of coatings. Above all, we want to further increase the proportion of consumables through our growing contract business. This is where we will continue to trust in Hi-Tech Coatings and ICP Group’s products in the future.’
ICP Group CEO Doug Mattscheck said, ‘We are excited to welcome the employees of Hi-Tech Coatings to the ICP family and to enter into this long term, strategic partnership with Heidelberg. We’re looking forward to providing Heidelberg and Hi-Tech Coatings’ customers with exceptional service, an expanded product offering, and an expanded commitment to innovation and growth going forward.’
Commenting on the divestment’s role in allowing Heidelberg to focus on core activities and portfolio adjustments, Heidelberg CEO Rainer Hundsdörfer said, ‘As part of our portfolio analysis and concentration on our core activities, we have come to the conclusion that we are withdrawing from our own production of packaging and printing coatings.
‘We will use the funds released as a result to push ahead with strategic investments for the future on the path to our digital transformation.’
Under the brand Saphira, Heidelberg has spent the previous decade developing a portfolio of high-quality consumables, both for everyday print jobs and for special applications right through to all production requirements in pre-press, press and post-press. This continues to include the in-house production of printing chemicals as part of the growth strategy in this area. All consumables bearing the Saphira are optimised and tested specifically for use in Heidelberg systems. Saphira products meet all industry standards for environmental protection and make a significant contribution to safeguarding the investment in the equipment used, noted Heidelberg. In addition to Saphira products, Heidelberg continues to offer consumables from other suppliers under their own brands.
