Elanders has signed an agreement to acquire the American company Midland
Information Resources. This acquisition is a continuation of Elanders'
international expansion and it will extend our presence on the world's largest
graphic market, the USA.
In line with Elanders' strategy to continue to expand internationally Elanders
has acquired all the shares in the American company Midland Information
Resources ("Midland"). Midland is located in Davenport, Iowa, USA, and is a
leader in global print management with its innovative solutions for content
management services, just-in-time-deliveries in digital print as well as
fulfillment and distribution. Among the clients are several Fortune 500
companies which Midland serves with global deliveries around the world.
"I am truly excited that Midland Information Resources will become part of the
Elanders family. We have been business partners for many years and Elanders has
proven to be a valuable resource in helping us create global solutions for our
clients. As part of the Elanders' team, I look forward to growing our presence
in the Americas and to capitalize on the synergies of these two strong
organizations" says Tom Sheehan, Managing Director of Midland.
Net sales in Midland are expected to total MUSD 29 in 2012 and the company
currently has approximately 180 employees.
Elanders has been in business in the US since 2008 and this acquisition will
expand Elanders' presence on the North American market. The graphic market in
the US is the world's largest and annual net sales are estimated at some 200
billion dollars. Digital print, which is Midland's primary business, represents
approximately 10 % of this and is steadily growing.
"The acquisition of Midland provides us with a strong local customer base and
bolsters our offer to existing customers with operations in the US. Midland's
innovative solutions for global print management supplement Elanders' offer to
large international companies, which is in line with our strategy to be a global
supplier to global clients that need local deliveries in different parts of the
world" says Magnus Nilsson, President and CEO of Elanders.
By acquiring Midland Elanders gains access to both innovative solutions and
advanced technique in digital print as well as a robust customer base where more
than 50 % of the company's net sales come from Fortune 500 companies. The
combination of Midland and Elanders not only opens up further expansion on the
North American market but entails greater global expansion in common customer
segments as well. Midland will continue to be run under its current name and
management.
The purchase price is expected to amount to MUSD 23 and the acquisition will be
financed with cash and loans.
Midland is expected to contribute positively to Group profits already in 2013.
Elanders AB (publ)
For further information please contact:
Magnus Nilsson, President and CEO, telephone: +46 31 750 07 50
Elanders discloses the information provided herein pursuant to the Securities
Markets Act and/or the Financial Instruments Trading Act. The information was
submitted for publication at 8:00 a.m. on 21 December 2012.
[HUG#1666609]
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Regulatory press releases
2012