1 July 2016
Xaar plc
XAAR ANNOUNCES ENGINEERED PRINTING SOLUTIONS AS FIRST ACQUISITION
Xaar plc ("Xaar" or "Company"), the leader in industrial inkjet technology, is pleased to announce the acquisition of Engineered Printing Solutions ("EPS"), a leading provider of product printing equipment in North America. The acquisition, which completed today (1st July 2016), is Xaar's first as part of the Company's strategic vision to achieve £220m of annual sales by 2020.
EPS has built a successful business through supplying customised and bespoke printing solutions to a wide variety of market sectors including promotional, packaging, medical, automotive, apparel, appliances, sports equipment and toys. One of its focuses has been to develop flexible and cost effective digital inkjet solutions.
EPS employs 60 staff. In 2015 EPS generated a 5% operating profit margin on $14m of revenue. Initial consideration for the acquisition is $11m with deferred consideration of $7.5m based on revenue and profit performance over a 3 year period.
"The product printing market is served by multiple print processes today and the fastest growing is inkjet", says Doug Edwards, CEO of Xaar. "Here, just as with other industry sectors, there is great potential to accelerate the adoption of inkjet. EPS has established a successful business and is well positioned to continue to grow. Xaar gains a strong customer base and footprint in North America, a region Xaar has been targeting for growth. The integration capabilities EPS brings to Xaar will enable us to provide greater support to our existing and new OEM partners".
Julian Joffe, who founded EPS in 1985 and who has been appointed as Xaar's new President of Engineered Printing Solutions, comments "Engineered Printing Solutions has a long track record of success through providing both analogue and digital inkjet solutions to its customers. Xaar values our brand, engineering capability and the innovative solutions we bring to the marketplace. Xaar brings deep knowledge of inkjet technology and access to wider channels. We are looking forward to working together to better serve our global and US customers and accelerate the growth of the business."
Analyst and investor call
Xaar will be hosting a conference call for analysts and investors at 11 am today (BST).
Enquiries:
Tulchan Communications |
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James Macey White |
+44 (0) 207 3534200 |
Chloe Barnes |
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Nick Hennis |
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About Xaar
Xaar is a world-leader in the development of inkjet technology and manufacture of piezoelectric drop-on-demand industrial printheads. The company also develops and sells ink systems, electronics and fluid optimisation services to accelerate inkjet system development and adoption. Xaar printheads incorporate patented technology which delivers unbeatable performance when decorating, patterning, depositing functional coatings on, or adding structure to, a variety of industrial and consumer products. Today leading manufacturers worldwide, in sectors ranging from ceramics, wide-format graphics and labels to direct-to-shape packaging and decorative laminates, choose Xaar's printheads because they are extremely precise, exceptionally versatile, incredibly reliable, and designed for high-volume production. Additional information about Xaar is available at www.xaar.com
About Engineered Printing Solutions (EPS)
EPS, founded in 1985 as Pad Print Machinery of Vermont Inc, is a leading provider of product printing equipment in North America. The company offers a full line of pad printing equipment-from table-top models to sophisticated fully automated printers, automated in line single pass multicolour Industrial Inkjet Printers plus a full complement of accessories and consumable supplies. EPS also designs and builds specialised machines to meet specific and unique customer application requirements. Market sectors it services include promotional, packaging, medical, automotive, apparel, appliances, sports equipment and toys. Additional information about EPS is available at: http://www.epsvt.com/
