Six printing firms have announced that they are seeking to merge
their operations to form a new bigger company by end of this month to
survive difficult market conditions in their industry.
The
boards of directors of Colourprint Limited, Digital Hub Limited, Kul
Graphics Limited, Printfast (K) Limited, The Print Exchange Limited, and
The Rodwell Press Limited announced that they will combine forces once
they receive regulatory approvals.
“Subject to
applicable regulatory approvals being received and other conditions
being met, the transaction is expected to complete by the end of June
2019, paving way for the phased transfer of the companies’ commercial
printing operations to the newly merged entity(ies),” said the six firms
in a joint statement.
“During this transition phase,
the companies will continue to operate independently and there will be
no disruption to the delivery of goods and services.”
The companies cited difficult market conditions for the merger decision including competition and increased digitisation.
The
firms print brochures, magazines, annual reports, branding and
packaging materials among others. Some customers have stopped or reduced
orders of physical print of their communication and marketing
materials.
“The printing industry in Kenya has been facing considerable
difficulties due to an extremely competitive landscape and a rapidly
changing marketplace that is increasingly price sensitive and demands
continual technological innovation,” they said.
“This
has resulted in significant operational and financial challenges for
all players in the industry. The Boards and shareholders of the
Companies have therefore decided, subject to regulatory approvals, to
join forces in order to ensure their viability and be better placed to
respond to the demands of the current business environment.”
The
statement was signed by the six directors of the firms including
Amardeep Vidyarthi (Colourprint Ltd), Mehul Devani (Digital Hub Ltd)
Kavit Bhakoo (Kul Graphics Ltd), Ajay K. Shah (Printfast (K) Ltd, Sachen
Gudka (The Print Exchange Ltd), Bharat Shah (The Rodwell Press Ltd).
They
said the merged giant firm will offer a “full-range of off-set,
digital, and large format print, packaging and finishing services, as
well as promotional branding products and services.”
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