EFI has bought both Reggiani Macchine and Matan Digital, significantly enhancing its digital printing capabilities. The most significant of these purchases is the Italian company Reggiani Macchine, based in Bergamo, which specializes in inkjet textile printing, thus taking EFI into one of the fastest expanding markets. It will be rebranded as EFI Reggiani.
It has an extensive line-up of industrial inkjet printers utilising water-based inks for printing on fabric. It uses a broad mix of inkjet technologies including water-based dispersed, acid, pigment and reactive dye printing inks.
The target markets include fashion and home furnishing textiles, with a comprehensive portfolio spanning the company’s original rotary screen technologies to the most advanced inkjet textile printers and inks in the industry. Reggiani has also established relationships with many of the leading textile manufacturing companies around the world and provides an integrated offering including equipment for all stages of the textile printing process, centred around its leading digital inkjet textile printers.
EFI CEO Guy Gecht. “The addition of Reggiani’s innovative team and their ‘Made in Italy’ textile printing technology, which is renowned worldwide, will drive continued growth in industrial textile, and also enable EFI’s customers to expand into soft signage-based display graphics using Reggiani’s water-based industrial inkjet printers.”
In order to acquire all of Reggiani’s outstanding shares, EFI will repay Reggiani debt of about €20.1 million, pay the former Reggiani shareholders up to about €27.4 million of cash, and issue the former Reggiani shareholders up to about €27.4 million of EFI stock, and will pay up to €50 million over as long as the next 30 months based on the achievement of revenue and profitability targets by the EFI Reggiani business.
The second acquisition was the Israeli company, Matan Digital Printers, which produces 3.2m and 5.0m wide high production hybrid printers. It gives EFI additional R&D capability as well as a cost-effective range of printers focused on signage, banners, billboards and fleet graphics. It also takes out a potential competitor to EFI’s existing Vutek range. Matan’s work force of approximately 70 employees has joined EFI, giving EFI a significant presence in Israel, a centre for innovation in the printing industry. Hanan Yosefi, the former President and CEO of Matan, has joined EFI as vice president and general manager, EFI Inkjet Israel.
EFI’s acquisition was an all-cash transaction in which EFI paid the shareholders of Matan approximately $29 million to acquire all of Matan’s outstanding shares. Under the purchase agreement, EFI also assumed approximately $5 million of Matan’s debt, and deposited $14 million into escrow to serve as security for EFI’s benefit for the indemnification obligations of the Matan shareholders. Subject to EFI’s claims against the escrow, portions of the escrow may be released to the sellers in 2017 and 2022.
This move will be watched by Fujifilm, which also rebadges several of the Matan printers as its Uvistar range.