Komori Corporation to Acquire Equity Stake in MBO Group
Monday, February 10, 2020
Komori Corporation to Acquire Equity Stake in Germany-based MBO Group, With Aim to Make it a Subsidiary
Komori Corporation announces it has signed a basic agreement with the MBO Group, a global company based in Germany that specializes in the manufacture and sale of post-press equipment, regarding the acquisition of a 100% equity stake in the latter with the aim of making it a Komori subsidiary. This information is voluntarily disclosed by Komori, as it does not fall under Tokyo Stock Exchange’s timely disclosure standards.
Since its founding in 1923, Komori has been engaged in the manufacture and sale of offset printing presses. Although Komori has developed the offset printing press business as its core operation, it is currently pushing ahead with transforming its business structure under the Sixth Medium-Term Management Plan (April 2019 – March 2024) in line with the plan’s key strategy aimed at expanding Komori’s range of marketing.
In particular, Komori has been focused on developing the Print Engineering Service Provider (PESP) business since 2009. To embody the PESP business approach, Komori launched the marketing of paper cutters, die cutters, blanking machines, pile turning machines and other post-press equipment that supports package printing. These products are greatly helping resolve major issues printing companies are now confronting, such as labor shortages.
Germany-based MBO Group was founded in 1965 to manufacture paper folding machines, a type of machinery that performs an important post-press process. The MBO Group has operated in this field for more than a half century, successfully commanding a considerable market share in Europe, the United States and elsewhere. Today, the MBO Group boasts plants in two locations in Germany (Oppenweiler in southern Germany and Bielefeld in central Germany) as well as in Portugal. It also operates local subsidiaries in the United States, France and China while maintaining collaboration with a variety of sales partners in countries around the globe. Taking full advantage of these networks, the MBO Group is currently engaged in the marketing of paper folding machines and the provision of after-sales services in more than 60 countries.
Products manufactured by the MBO Group are known for highly precise performance and superior productivity. The Group is distinguished by its technological capabilities in multiple fields, including paper folding for general commercial printing and inline processing, employing a combination of paper folding machines and digital printing systems (DPS). Furthermore, Herzog+Heymann, a subsidiary of the MBO Group, provides machinery designed to perform a complex folding process that handles thin paper and requires specialized technology unmatched by competitors. In recent years, the MBO Group also launched collaboration with robot makers, resulting in the creation of labor-saving systems as part of the MBO Group product lineup.
The MBO Group’s operations do not overlap with those undertaken by Komori. Through the acquisition of the equity stake in the MBO Group, Komori expects to be able to market unique products that will support its PESP business. Specifically, the inclusion of the aforementioned operations into Komori’s business portfolio will help it introduce post-press solutions for commercial printing, a new field for Komori. When coupled with IoT-based cloud solutions, KP-Connect that Komori is promoting on a global basis, the MBO Group’s products will also help provide customers with even more robust, seamless printing production systems that include post-press processing. Komori is also looking to develop new solutions through the combination of the MBO Group’s technologies and Komori’s DPS, offset printing presses and other key products.
Komori believes that both companies are well positioned to complement each other. Going forward, Komori will strive to bring together technologies and networks offered by both companies in the field of post-press equipment marketing. In these ways, Komori will effectively push ahead with its initiatives aimed at transforming its business structure.