EFI announced the purchase of two companies on July 1 extending its inkjet printing interests, including Matan Digital Printers, which focuses on grand-format printing, and Reggiani Macchine, which focuses on textiles.
EFI explains the Matan purchase fills a key spot in its product portfolio for a lower-acquisition cost line of roll-to-roll printers aimed on signage, banners, billboards and fleet graphics. Based in Rosh Ha’Ayin, Israel, Matan has developed super-wide inkjet systems, primarily with in-line cutting and slitting, for more than a decade.
Matan’s work force of approximately 70 employees has joined EFI, which the company describes as providing it with a significant presence in Israel. Yosefi becomes VP and GM of EFI Inkjet Israel.
EFI’s all-cash acquisition of Matan pays the shareholders approximately $29 million to acquire all outstanding shares. Under the purchase agreement, EFI also assumed approximately $5 million of Matan’s debt, and deposited $14 million into escrow, portions of which may be released to the sellers in 2017 and 2022.
Four days later, EFI entered the textile printing market with its acquisition of Reggiani Macchine of Bergamo, Italy, which has been active for more than 60 years. Reggiani is a provider of inkjet printers utilizing water-based inks for printing on fabric.
Reggiani’s technologies, which will be rebranded as EFI Reggiani, address a range of textile printing, with systems suitable for water-based dispersed, acid, pigment and reactive dye printing inks.
“This acquisition gives EFI an immediate leadership position in one of the world’s largest industries undergoing the transformation from analogue printing to digital,” said EFI CEO Guy Gecht. “The textile printing market is just beginning that transition.”
Reggiani has customers in more than 120 countries served by a wide distribution network and agents in over 40 countries. Its workforce of approximately 190 employees joins EFI.
To acquire all of Reggiani’s outstanding shares, EFI will repay Reggiani debt of about €20.1 million (US$22.6 million), pay the former Reggiani shareholders up to about €27.4 million (US$30.8 million) of cash, and issue the former Reggiani shareholders up to about €27.4 million (US$30.8 million) of EFI stock, and will pay up to €50 million (US$56.2 million) in the future as long as the next 30 months based on the achievement of revenue and profitability targets.