Heidelberg to focus on core activities with the sale of Hi-Tech Coatings to ICP Group / USA
Heidelberger Druckmaschinen AG (Heidelberg) has sold its Hi-Tech Coatings division for coatings used by the packaging, labeling, and printing industries to Innovative Chemical Products Group’s (ICP Group) Industrial Solutions Group (ISG) division, a leading global provider of packaging, labeling, and specialty clear coatings based in Itasca, IL, USA. The divestiture is a part of Heidelberg’s initiative to focus on core activities and portfolio adjustments. Hi-Tech Coatings develops and produces over 1,000 environmentally compatible products and formulations, primarily water-based and UV-based coatings, at its sites in Aylesbury / UK, Zwaag / Netherlands, and Taylor, MI / USA. With the sale, three sites and a total of around 60 employees will be transferred to ICP’s ISG division. The transaction also established a strategic partnership between Heidelberg and ICP Group to ensure Heidelberg’s future sales of its coating portfolio to its customers. The purchase price amounts to EUR 38.5 million. Heidelberg expects the transaction to generate non-recurring income of around EUR 20 million.
The final terms will be determined at the time of closing. Subject to customary closing conditions, the sale is expected to be effective in 2019.
"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," said Rainer Hundsdörfer, CEO of Heidelberg. "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."