The companies will be acquired through a preferential new share issue of 3.2 million class B shares in Elanders AB. A smaller additional purchase price may also be paid. The acquisitions, which are expected to be finalized in the second quarter of 2012, are subject to the approval by the general shareholders meeting of Elanders AB and the German antitrust authorities.
Fotokasten is a strong brand on the growing German market in personalized consumer photo products such as photo books and calendars. d|o|m develops technical solutions for digital photo and print services, including white label software applications. Fotokasten uses d|o|m’s technical solutions to serve hundreds of thousands of consumers. Together, the two companies have 35 employees.
“The acquisitions give Elanders access to extensive experience in technology development and expertise in the consumer market.” said Magnus Nilsson, President and CEO of Elanders. ”In addition, fotokasten and d|o|m bring us around 400,000 recurring customers. Their know-how and technology platform in combination with Elanders’ global presence will make it possible for us to expand into other markets and parts of the world.”
Elanders has worked closely with fotokasten and d|o|m for several years and handles all their production and fulfillment of photo products and other printed matter. In 2011, this amounted to sales of approximately Euro 6.7 million. Fotokasten and d|o|m will continue to operate under their brand names under the umbrella of the Elanders Group.
The acquisition is expected to contribute positively to Group’s net sales and profits already in 2012.
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