Heidelberg to keep Gallus Group
The Gallus Group's sale by Heidelberger Druckmaschinen AG (Heidelberg) to the Swiss company benpac holding ag has not been completed. In a press release dated 29 January 2021, Heidelberg states that benpac holding ag did non make the purchase price payment of Euro 120 million agreed at the solar day's endmost, although all the necessary conditions were met from its side. Heidelberg says it had to presume until the very stop that the transaction would be completed successfully. "Heidelberg will assert its rights," says the release.
The five sites and around 430 employees of the Gallus Group will remain with Heidelberg. Zip will alter for Gallus customers. Heidelberg volition continue to handle sales and service for the Gallus portfolio, and their personal contacts volition remain the same. Heidelberg will now be examining various options for the corporate future of Gallus. In any example, Gallus volition continue on its path to boosting operating performance. With an independent setup and specific focus on its flexographic printing marketplace, Gallus
fabricated skillful operational progress final year under the Heidelberg umbrella.
Transformation program reduced debt and improved liquidity
Irrespective of the Gallus transaction, which has not been completed and at present seems to exist off, Heidelberg says it is already benefiting considerably from the transformation programme launched in the current 2020/21 fiscal year. The program to stabilize the company financially in the challenging Covid-19 environment and align it in a future-proof manner in its assisting core business concern seems to be working.
Since March 2020, cyberspace debt is reduced by more than Euro 250 million from a peak of Euro 390 one thousand thousand, and liquidity has been improved by effectually Euro 450 one thousand thousand. As a result of the accelerated Thou&A program, Heidelberg will generate proceeds in the mid-double-digit meg Euro range from the transactions completed in December 2022 alone.
Marketplace challenged by worsening Covid-19 state of affairs in Europe
The market remains challenging due to the currently worsening Covid-19 state of affairs, especially in Europe, North and Southward America, and Africa. Heidelberg says information technology is systematically continuing its transformation course with the measures initiated to create further financial scope. In operational terms, the third quarter of the current financial twelvemonth saw a continuation of the up tendency in sales and incoming orders that has been ongoing since May 2020. Heidelberg continues to expect to achieve its targets for the financial year
2020-21, which ends on 31 March 2021.
Our view
The auction of the Gallus Grouping by Heidelberg only revealed how seriously the Heidelberg management was taking the Covid-xix pandemic and its transformation into a leaner and more focused company. The sales, service, and supply of spare parts in many if not most parts of the world were to be continued by Heidelberg – including about likely Republic of india.
Customers were asking almost the new ownership. Information technology's practiced that the uncertainty is over for them. The Gallus Grouping's renewed focus equally a somewhat independent entity within the Heidelberg grouping should work well for both existing and potential customers. The synergy in terms of agility, responsiveness, and promoting of each other's machines past the Gallus and Heidelberg teams in India could eventually be an example for the group every bit a whole.
At the time of the deal, nosotros interviewed Ferdinand Rueesch every bit a member of the Heidelberg board, wherein he said that one of the factors in the transaction was the demand for investment in new developments by Gallus. Now, it seems that this demand for cash will have to come out of the Heidelberg kitty again.
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Source: https://packagingsouthasia.com/events/gallus-group/
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