Heidelberg steps up activities in the packaging market and gains potential strategic anchor shareholder.
Heidelberg has entered into agreement with Masterwork Group Co., Ltd. (Masterwork) from China which intends to acquire a stake in Heidelberg via capital increase from authorized capital with an exclusion of shareholders' subscription rights.
With the agreement, Masterwork is to obtain around 8.5% of Heidelberg’s share capital. The implementation of such capital measure is subject to approval by Heidelberg's supervisory board.
Based in the Chinese city of Tianjin, Masterwork is China’s largest manufacturer of die-cutters and hot-foil embossing machines.
Heidelberg has had a long-standing sales partnership with Masterwork. The agreement will allow Heidelberg to further improve its market position in the growing packaging printing segment.
The funds Heidelberg generates with the capital increase are to be used to accelerate its digital agenda (such as digitizing products, processes, and business models) and for general business financing.
“The Heidelberg Management Board and Supervisory Board are delighted that our long-standing, successful collaboration with Masterwork is to become much closer. This opens up further potential in the growing packaging printing segment, especially in China – the world’s largest individual market,” said Heidelberg CEO Rainer Hundsdörfer.
“We are expecting better capacity utilization at our plants across the globe to make us far more efficient, but I would like to stress that this will not weaken our sites in Germany. We are delighted that in Masterwork we are obtaining another long-term investor that firmly believes in the company’s innovative prowess, strategy, and potential for the future.
Masterwork President Li Li added: “Heidelberg is our ideal partner for jointly leveraging growth potential in the packaging printing market. The stake we are obtaining in this long-established company and world market leader underlines that we are in it for the long haul and are confident Heidelberg has adopted the right strategy."