Gallus Group is involved in the development and manufacturing of both conventional and digital narrow-web rotary label presses


benpac has agreed to acquire Gallus Group from Heidelberger. (Credit: Heidelberger Druckmaschinen AG)

Swiss packaging business benpac holding has agreed to acquire Gallus Group from Heidelberger Druckmaschinen in a deal valued at around €120m ($138.6m).

Gallus Group is engaged in the development and manufacturing of both conventional and digital narrow-web rotary label presses.

Gallus has production facilities in Switzerland and Germany

With production facilities in Switzerland and Germany, Gallus produces a machine portfolio that is supported by a range of screen-printing plates (Gallus Screeny), decentralised global service activities and comprehensive selection of accessories and spare parts.

Heidelberger has decided to sell the label press business to focus more on its core business of sheetfed printing. Heidelberg Web Carton Converting offers high-end webfed printing solutions for folding cartons.

benpac holding directors board chairman and CEO Marco Corvi said: “The acquisition of the Gallus Group is of great strategic importance for benpac holding ag. It completes our overall range in the packaging sector and ensures that the entire value chain is covered.”

The deal will allow benpac to take the ownership of Gallus Holding in St. Gallen, Gallus Ferd. Rüesch in St. Gallen, Gallus Druckmaschinen in Langgöns, Heidelberg Web Carton Converting in Weiden in der Oberpfalz, and Menschick Trockensysteme in Renningen.

Gallus employs around 430 employees at five sites in Germany and Switzerland.

Heidelberg will work with benpac on the Gallus Labelfire digital label press in the future. Heidelberg will continue to provide the digital printing unit (DPU) and consumables required for Gallus Labelfire digital label press.

As part of the deal, Heidelberg will continue to oversee the sales and service of the Gallus portfolio, after the takeover.

Subject to the approval of relevant bodies and other condition precedents, the deal is expected to be completed by the end of this year.

Heidelberg CEO Rainer Hundsdörfer said: “We are selling our narrow-web rotary and rotary flexographic printing activities to focus more closely on innovative solutions for the entire printed sheet value chain.

“We will be retaining our in-house digital expertise and, by collaborating with benpac on the Gallus Labelfire, we will also be making further progress with the digitization of conventional presses. At the same time, we will remain a major supplier on the growing label market with our sheetfed offset presses.”

In November 2019, Innovative Chemical Products Group signed an agreement to acquire Hi-Tech Coatings, a manufacturer of coatings for the packaging and commercial printing industries, from Heidelberger for €38.5m ($42.6m).