Heidelberg is looking to further improve its market position in the growing packaging printing segment by taking its long standing sales partnership with Masterwork Group to a whole new level.
Based in the Chinese city of Tianjin, Masterwork is to obtain around 8.5% of the Heidelberg share capital under a cash capital increase from authorised capital excluding shareholder subscription rights. The implementation of such capital measure is subject to approval by Heidelberger Druckmaschinen AG's supervisory board. The proposed capital increase provides the opportunity for Heidelberg to acquire a further strategic anchor shareholder with a long term investment horizon as well as to strengthen its equity. Subject to approval by the relevant bodies on both sides and the Chinese authorities, the capital measure should provisionally take place by the end of the first calendar quarter of 2019.
The funds Heidelberg generates with the capital increase are to be used to accelerate its digital agenda (digitising products, processes, and business models, for example) and for general business financing. Masterwork supports the Heidelberg strategy and is demonstrating its clear commitment to long term collaboration. Heidelberg is currently considering and discussing whether it will seek to obtain a shareholding in Masterwork.
‘The Heidelberg management board and supervisory board are delighted that our long standing, successful collaboration with Masterwork is to become much closer. This opens up further potential in the growing packaging printing segment, especially in China – the world’s largest individual market. We are expecting better capacity utilisation at our plants across the globe to make us far more efficient, but I would like to stress that this will not weaken our sites in Germany. We are delighted that in Masterwork we are obtaining another long term investor that firmly believes in the company’s innovative prowess, strategy, and potential for the future,’ commented Heidelberg CEO Rainer Hundsdörfer.
‘Heidelberg is our ideal partner for jointly leveraging growth potential in the packaging printing market. The stake we are obtaining in this long established company and world market leader underlines that we are in it for the long haul and are confident Heidelberg has adopted the right strategy,’ said Masterwork president Li Li.
The two companies have operated a close post press partnership for a number of years, turning print products into folding cartons for the packaging market. They also benefit from a long standing, successful sales collaboration.
Masterwork specializes in post press equipment for the folding carton industry. Back in 2014, it acquired the post press packaging technologies of Heidelberg, which retains responsibility for global sales and digital customer relations.