For most people Belgium is best known for its superb chocolates and its beer. In both areas the country claims to lead the world. In the prepress and software solutions market for printed packaging Belgium also claims to lead the world, this time through two software companies both based in the town of Gent, these being Esko and Artwork Systems

The major news from the vendor community last week was the announcement that these two leading workflow suppliers for the packaging industry, Esko Graphics A/S and Artwork Systems Group NV are to combine their operations. The three principal shareholders of Artwork Systems have agreed to sell their 13,074,483 shares, that amount to majority holding of 76.69% of the company’s stock to Esko. Esko is owned by the Danish private equity fund Axcel. The shares are to be sold at a purchase price of €11.50 in cash that values Artwork Systems at €196 million ($268 million) in total. The target date for the completion of the share sale is August 9, 2007. Following the acquisition of control Esko NV will launch a mandatory public offer for all the remaining shares and outstanding warrants of Artwork Systems Group. Subsequent to the completion of the offer, after reopening if any, Esko will launch a buy-out offer, provided it has acquired 95% of the share capital of Artwork Systems Group.

The three principal shareholders and founders of Artwork Systems Group are Guido Van der Schueren, Chairman, Peter Denoo, CEO, and Bart Denoo, Chief Software Architect. Through a partial investment by Parana, the holding company of Guido Van der Schueren, of the proceeds from the sale of its shares in Artwork Systems Group NV, Guido Van der Schueren will become a significant shareholder of the combined entity, next to Axcel and Management members. Van de Schueren will become Chief Operating Officer of Esko Graphics A/S and together with Carsten Knudsen, the CEO of Esko Graphics A/S will form the Executive Management Board. Both will serve as Executive Directors of the Supervisory Board of Esko. It is also interesting to note that neither Kroy Finance or Widner Development, the holding companies for the Denoo brothers appear to be re-investing any of their proceeds from the sale of their 4,294,608 shares each.