Domino's £19.1m acquisition deal takes Graph-Tech in-house

Domino Printing Sciences has taken full ownership of Swiss-based inkjet equipment manufacturer, Graph-Tech, for an initial purchase price of £12.4m though the amount could increase by a further £6.7m depending on whether Graph-Tech meets certain revenue and sales targets over the next three years.

Like several of Domino's acquisitions in the last year, the Cambridge company already owned a considerable stake in the firm from a previous transaction, this one dating back to July 1999, and today acquired the full 100 per cent of equity by purchasing the remaining 80.65 per cent stake in the company, prompting a 2.9 per cent increase in Domino's share price, up 16p to £5.61.

Graph-Tech has played an increasingly important role in Domino's business – it supplies Domino's K-Series product range and the new N600i full colour digital label press as well as production line controllers and other digital printing equipment. By bringing the company fully under its control it can now protect this relationship.

"We have built a profitable digital printing business based on Graph-Tech's technology," said Domino MD, Nigel Bond. "The timing of our acquisition of the remaining shares in the business coincides with the successful introduction of our new digital label press products.

"We believe these products combined with planned new developments will provide us with significant opportunity to capitalise on the growth in use of digital printing technology, in both printing and packaging applications."

 

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