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Jul 15, 2010 12:00 AM
Agfa Graphics (Mortsel, Belgium) has signed an agreement to purchase the assets of Totowa, NJ-based Harold M. Pitman Company, a leading U.S. supplier of prepress, industrial inkjet, pressroom and packaging printing products and systems.
The Pitman Company acquisition substantially increases Agfa Graphics' revenue in the United States to more than $500 million. The incremental EBIT contribution is expected to be in line with Agfa Graphics' global 7% target. After the closing, Agfa expects further growth of its U.S. top line resulting from the combination of expertise available in both companies. Agfa also expects strong synergies to be delivered from the consolidation of sales forces and the reduction of G&A expenses.
Pitman Co. has 502 employees and 16 locations throughout the USA. According to Agfa Graphics, the acquisition will enable Agfa to significantly strengthen its position in the U.S. printing industry.
"Pitman's large customer base and knowledge of the industry will offer immediate and unique growth opportunities for Agfa Graphics' industrial inkjet and prepress solutions," the company reports. "Agfa Graphics' addressable market will increase substantially, thanks to the addition of numerous product lines to its offering, including flexographic printing plate solutions for the packaging industry, pressroom products and value added services. Moreover, Agfa Graphics will be able to complement its own developed industrial inkjet offering with the addition of a vast range of media, new inks and wide format printing systems."
"Pitman's strong distribution network and broad portfolio of products and systems, combined with our leading technology, will provide us with promising growth opportunities in this strategically important region. One glance at Pitman's extensive catalog is enough to understand that we will considerably expand our scope," says Stefaan Vanhooren, Agfa Graphics' president. "One of the main drivers behind this decision was the fact that we gain a unique opportunity to significantly grow our inkjet business."
Pitman's Chairman of the Board, Paul (Peter) F. Schmidt, Jr., says, "Our family built the Pitman Company into an industry leading graphic solutions provider and for over 50 years we have been strategic partners with Agfa. I feel very confident about this new chapter in the history of the Pitman Company and I know that it is the combined force of Pitman and Agfa that will drive this company to the next level by providing present and future customers a greater value package of goods and services."
The Pitman Company will operate as a subsidiary of Agfa Corp.
The transaction is expected to close within 30 days.