The sale of Hi-Tech Coatings is a part of Heidelberg’s plan to strengthen liquidity for future investments

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Image: Heidelberg intends to focus on core activities. Photo: courtesy of Heidelberger Druckmaschinen AG.

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

Hi-Tech Coatings division is engaged in developing and manufacturing environmentally compatible products and formulations, primarily water-based and UV-based coatings used by the packaging, labelling, and printing industries.

Under the terms of the deal, ICP Group’s packaging, labelling, and speciality clear coatings division Industrial Solutions Group (ISG) will acquire Hi-Tech Coatings, which operates sites in Aylesbury, UK; Zwaag, the Netherlands; and Taylor in Miami, US.

The acquisition allows ISG to expand coverage in global-packaging end markets

The acquisition is a part of ICP ISG’s plan to expand its coverage to global-packaging end markets.

The sale forms part of Heidelberg’s plan to focus on core activities and portfolio adjustments while strengthening liquidity for future investments.

Heidelberg CEO Rainer Hundsdörfer said: “As part of our portfolio analysis and concentration on our core activities, we have come to the conclusion that we are withdrawing from our own production of packaging and printing coatings.

“We will use the funds released as a result to push ahead with strategic investments for the future on the path to our digital transformation.”

Heidelberg said that the deal ensures future sales of its coating portfolio to its customers. The transaction is subject to customary closing conditions.

ICP Group CEO Doug Mattscheck said: “When the sale is finalized, ICP ISG will have additional services, resources and solutions to offer not only its own customers, but those of Hi-Tech Coatings as well.

“The acquisition will also allow us to expand our product offerings within the high-performance water-based and ultraviolet-curable coatings and expand our international customer base in Europe, the Middle East and Asia-Pacific regions.”

Heidelberg expects the transaction to generate around €20m ($22.1m) in non-recurring income.

In October this year, US-based Arkay Packaging has invested in Heidelberg Primefire 106 digital press in a bid to enhance its production capabilities.

The Heidelberg Primefire 106 seven-colour industrial inkjet 40” B1 size digital press will help Arkay to improve its technological capabilities for the luxury packaging market.