Acquisition of State Printing House Plc. in Romania: the consolidated sales revenue may increase by more than 1 billion forints
The State Printing House Plc. has been present in the Romanian market for seven years, with continually increasing sales revenue. The favorable experiences drove the Company to increase its presence by a newer acquisition: State Printing House purchased 50 percent of GPV Mail Services S.R.L. Sales revenue of the Romanian corporation in 2009 amounted to 4 million 287 thousand Euros, while its EBITDA amounted to 446 thousand Euros. Its main activities contain the high-volume business correspondence based on security data logistics as well as the production and sending out of bank statements.
Our Corporation has purchased a 50-percent quota in S.C. GPV Mail Services S.R.L. (hereinafter called as GPV) in accordance with the quota sales contract concluded and signed on July 30, 2010 between the State Printing House Plc. and DBR Holding S.A. owned by the Hungarian Díjbeszedő Holding Zrt. Closing of the transaction – besides other closing conditions – is expected at latest on November 30, 2010, after receiving the license of the Romanian Competition Authority. Main activities of the company increasing continuously over the last four years cover the printing, personalization and posting of bank statements and direct marketing materials, and in the field of these activities it plans to achieve further growth in 2010 as well. The company’s client portfolio is composed mainly by banks (48 %), financial service providers (13 %) and public-utility services (25 %). Three banks from among the five greatest ones in Romania are the clients of the company.
State Printing House Plc. is an active player in the Romanian market via Tipo Direct S.R.L. established in 2004 and having its company seat in Cluj, which is 50 percent owned by the Corporation. State Printing House Plc. has significantly increased its own production capacity and market share in Romania by the current quota acquisition. Since the State Printing House Group, the machine park of GPV and its applied technologies are compatible, the purchase and production synergies can be utilized to a greater extent in the future. The plants of Tipo Direct in Cluj and GPV in Bucharest provide the opportunity to cover the whole Romanian market. Therefore, this transaction is able to increase the efficiency of the Romanian distribution, and the total customer base of the both Romanian interests guarantees more effective sales as previously, not only in the high-volume business correspondence segment, but in the Romanian distribution of the security and card products representing higher added value, as well as in the segment of electronic payment solutions developed by Díjbeszedő Holding Zrt., who obtained an indirect quota in Tipo Direct as well, and concluded a strategic agreement with the State Printing House Plc. for the area of Romania and Moldavia.
State Printing House Plc. will pay the amount of 1.5 – 2.2 million EUR for the acquired quota, depending both on the success of new contracts planned by GVP for this year and the value of EBITDA in the business year of 2010, and therefore, the purchase price will mean a six-fold or seven-fold EV/EBITDA multiplier.
One of the conditions which the closing of transaction is subject to, stipulates that the State Printing House Plc. concludes an Agreement with DBR Holding SA on the rights related to the control, which will guarantee the consolidation of GPV as subsidiary for the State Printing House Plc., and therefore, the total sales revenue and the profit corresponding with the ownership proportion will be considered in the consolidated report of the State Printing House Group.
“Over the last two or three years, we have carried out due diligence processes on a dozen of possible objects in the region. In case of each company we examined how we could execute an acquisition considering the maximum interests of our shareholders. Besides establishing real value for the shareholders, the present transaction continues to increase the market potential of the company group in the CEE region, which efficiently promotes our growth strategy. We will surely continue to make all efforts in order that State Printing House Plc. and our self-developed unique technology will be inevitable factors in the large projects of the surrounding countries.” – said Gábor Zsámboki, CEO of the State Printing House Plc.
State Printing House Plc.