Rotogravure Merger Planned

Gutersloh/Hamburg, Germany–In early September, three major printing companies announced that they had signed a letter of intent to merge their rotogravure printing operations in Germany.

In the agreement, the three companies, Arvato, Axel Springer AG, and Gruner+Jahr laid down the key points for the planned business merger of their rotogravure printing operations at facilities in Ahrensburg and Darmstadt (Axel Springer), Dresden and Itzehoe (Gruner+Jahr), and Nüremberg (Arvato). Arvato and Gruner+Jahr are divisions of Bertelsmann AG, a diversified global media company with more than 73,000 employees and revenues exceeding $20 billion.

The interim agreement includes the printing plant under development by Arvato in Liverpool, England, which may encompass more than 550,000 square feet. However, Arvato's rotogravure sites in Italy and Spain are not included in the plan.

Arvato and Gruner+Jahr are to hold equal shares of 37.45%, with Axel Springer AG holding the remaining 25.1% share. The objective of the planned joint venture under a single management, say officials, is to ensure the long-term security of the rotogravure activities in the keenly fought European market for illustration printing.