Business News

Elanders expands its capacity and customer base in Germany by acquiring Mairs Graphische Betriebe

Tuesday 27. May 2008 - Elanders follows up its success with last year’s acquisition of Sommer Corporate Media in Stuttgart by acquiring 100 percent of the shares in Mairs Graphische Betriebe GmbH & Co KG (MGB) in Ostfildern, Stuttgart, Germany.

MGB has 60 employees and a turnover of around MEUR 15. The company is currently owned by Mair Dumont which is the leading publisher of maps and travel books in Europe, with brands such as Falk, Marco Polo, Baedeker and Hallwag. Approximately a fourth of turnover in the company is derived from Mair Dumont and the rest from external customers such as BMW, V.A.G., Bosch and Daimler. MGB is a well invested business and its main production method is offset print in large format.

This acquisition increases Elanders production capacity, which thanks to Sommer Corporate Media’s success has been diminishing in Germany. The Group also gains access to large format production in sheet-fed offset, which is a clear production trend within the graphic industry in Germany. In addition, Elanders broadens its customer base in Germany, particularly in the strategically important segment Automotive.

MGB will be integrated into Sommer Corporate Media and become part of Elanders business area Infologistics. Peter Sommer, who is the MD in Sommer Corporate Media and also a member of Executive Management, will be responsible for the new German unit.

The purchase price is estimated at MEUR 2.8, and the transfer of a financial leasing contract of MEUR 1.6. No group surplus value is expected to be generated in connection with the acquisition.

MGB should be consolidated into Elanders’ accounts from June 2008. Elanders does not expect the acquisition to have any noticeable effect on earnings per share for 2008 but the business will contribute positively to profits starting in 2009.