Matan Digital Printers, provider of super wide format inkjet technology and Reggiani Macchine, specialist in inkjet textile printing have both been acquired by EFI.
Both companies have been developing inkjet solutions, and will strengthen EFI’s offering of inkjet technology, and more specifically in super wide format and textile printing.
Israeli company Matan has developed digital printers and presses for a wide range of industrial applications for more than a decade. Its focus on roll-to-roll workflow has resulted in a strong product line for material-handling units such as in-line cutting and slitting systems.
‘This acquisition gives EFI an even broader range of products to help our customers capture important opportunities in superwide format display graphics printing,’ said CEO Guy Gecht. ‘Matan’s strong R&D capability will further accelerate EFI’s inkjet innovation, while filling a key spot in EFI’s portfolio for a lower-acquisition cost line of roll-to-roll production printers focused on signage, banners, billboards and fleet graphics.’
Reggiani’s inkjet technologies, which will be rebranded as EFI Reggiani, addresses the full scope of textile printing, with versatile printers suitable for water-based dispersed, acid, pigment and reactive dye printing inks.
The company has also established relationships with many of the leading textile manufacturing companies around the world and provides an integrated offering including equipment for all stages of the textile printing process, centred around its leading digital inkjet textile printers.
‘This acquisition gives EFI an immediate leadership position in one of the world’s largest industries undergoing the transformation from analogue printing to digital. The textile printing market is just beginning that transition, which will enable manufacturers to shift from long-run to on-demand manufacturing, responding to the increasing demands of short runs and customisations,’ continued Mr Gecht. ‘The addition of Reggiani’s innovative team and their ‘Made in Italy’ textile printing technology, which is renowned worldwide, will drive continued growth in industrial textile, and also enable EFI’s customers to expand into soft signage-based display graphics using Reggiani’s water-based industrial inkjet printers.’
Matan’s acquisition was an all-cash transaction in which EFI paid the shareholders approximately $29 million to acquire all of the outstanding shares. Under the purchase agreement, EFI also assumed approximately $5 million of Matan’s debt, and deposited $14 million into escrow to serve as security for EFI’s benefit for the indemnification obligations of the shareholders.
To acquire all of Reggiani’s outstanding shares, EFI will repay Reggiani debt of about €20.1 million, pay the former Reggiani shareholders up to about €27.4 million of cash, and issue the former Reggiani shareholders up to about €27.4 million of EFI stock, and will pay up to €50 million over as long as the next 30 months based on the achievement of revenue and profitability targets by the EFI Reggiani business.
