New strategic acquisition by Elanders in e-commerce – makes Elanders one of the leading players in Europe
Press release from Elanders AB (publ) 2013-08-14
Elanders has acquired myphotobook GmbH, one of Europe’s leading e-commerce companies in personalized photo products for consumers. This deal is right in line with Elanders’ strategy to develop product area e-Commerce. Through the acquisition of myphotobook we also significantly broaden our customer base and gain access to another strong brand, comments Magnus Nilsson, President and CEO of Elanders AB.
Myphotobook started in 2004 and net sales were more than MEUR 16 in 2012. Its headquarters are in Berlin and the company has around 70 employees. The seller is Holtzbrinck Digital, the investment holding company for online businesses of the publishing group Georg von Holtzbrinck and one of the leading internet investors in Germany. The purchase price is approximately MEUR 10.5 on a cash and debt free basis. Myphotobook will be consolidated in the Elanders Group starting from 1 October 2013 and is expected to make a positive contribution to Elanders’ result already in 2013. The acquisition is dependent on obtaining the required approvals from the German Competition Authority.
While the graphic industry is going through an intense restructuring and affected by a cautious business cycle, Elanders in on the offensive with yet another acquisition in e-commerce as well as personalized products. A year ago Elanders bought the German e-commerce companies fotokasten and d|o|m that sell photo books and photo products over Internet.
“Fotokasten and d|o|m were quickly integrated into Elanders’ operations and have contributed to higher net sales and improved profitability. We continue to follow our expansive strategy by acquiring myphotobook, primarily focused on photo books and has a strong brand on the European consumer market. The company has sales in 16 European countries while fotokasten and d|o|m primarily has Germany as their main market. By combining myphotobook’s broad geographic presence with fotokasten’s extensive product portfolio containing more than 200 products the acquisition will contribute to Elanders’ growth in the coming years,” says Magnus Nilsson.
“The European market for photo books is currently very fragmented and the market needs to be consolidated. With the acquisition of myphotobook Elanders becomes one of the absolutely largest players in Germany and the third or fourth largest in this area in Europe,” states Martin Lux, responsible for e-Commerce at Elanders.
In the past few years myphotobook has grown significantly following the trend in rapid digital development and the increasing use of smartphones and tablets.
“We expect continued good demand for photo books over the coming years. This trade has grown by more than 30% in Western Europe since 2010. Together with Elanders we will have the necessary muscle and resources to continue to develop innovative and user friendly solutions for ordering of photo books and other photo products over the Internet, such as apps for both smartphones and tablets”, continues Martin Lux.
During 2012 and 2013 Elanders has made the following acquisitions:
- fotokasten and d|o|m (e-commerce), March 2012 – Germany
- Midland Information Resources (digital print), December 2012 – USA
- McNaughtan’s (exclusive labels), February 2013 – Scotland
- myphotobook (e-commerce), August 2013 – Germany
For further information please contact:
Magnus Nilsson, President and CEO of Elanders AB,
+46 31 750 07 50,
Martin Lux, responsible for e-Commerce at Elanders,
+49 7151 1651 757
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 14 August 2013.