Manugraph to acquire DGM of US for $19.2 m
Web offset printing machine manufacturer Manugraph India Ltd on Tuesday said it will acquire US-based Dauphin Graphic Machines Inc (DGM) for $19.2 million, making the combined entity the world’s largest single width press manufacturing company.
“We do not export any machines to US currently and so to bridge this gap we decided to acquire Dauphin,” said Manugraph managing director Pradeep Shah.
“With this acquisition our market share in the global market will increase to 50% from 15% currently,” he added.
DGM, based in Pennsylvania, US, has a current annual turnover of around $70 million and employs 200 people. It currently enjoys a market share of 60% in the US.
Commenting on the benefits of the acquisition for both the companies, Manugraph chairman Sanat Shah said, “The acquisition will allow us to get an entry into the North American market besides increasing our manufacturing capabilities and global market share.”
DGM currently outsources to the tune of $22 million and the company will be able to outsource a substantial part of it to Manugraph, he added. Said Chris Lunt, CEO, DGM: “In today’s competitive global press business, the need to form global alliances is a must. We clearly saw the the merits of a common umbrella from day one, as each company’s strength perfectly complements the other.”
The company, to be known as Manugraph DGM Inc, targets sales of Rs 500 crore in FY 2007 and Rs 750 crore by 2008.
Avendus Advisors was the sole advisor to Manugraph.