Bryan, Garnier & Co advises the founding shareholders of MGI Digital Technology regarding the sale of their stake to the Japanese Group Konica Minolta Inc, which values MGI Digital Technology Group at more than € 200m.
Paris, April 12th 2016 – Konica Minolta strengthens its alliance with MGI DIGITAL TECHNOLOGY, which designs and manufactures a comprehensive and innovative range of digital multi-substrates, color presses (paper and plastic) and a line of high end-finishing products dedicated to Paper & Plastic, by increasing its equity investment to 40.76%.
MGI Digital Technology announces the strengthening of its alliance with Konica Minolta Inc. (Konica Minolta) to accelerate its development worldwide. As of April 1, 2016, a major agreement has been reached regarding the distribution of MGI Digital Technology's entire equipment portfolio through Konica Minolta's network. In addition, this broadened agreement is cemented by an increase in the ownership position of Konica Minolta in the capital of MGI Digital Technology.
Starting during the second half of 2016, the entire range of MGI Digital Technology’s product line will be gradually distributed through the global sales network of Konica Minolta. This agreement will strengthen the existing distribution network of MGI Digital Technology.
This agreement will provide a major boost to the growth and profitability of MGI Digital Technology by allowing to gain greater market share in the most dynamic sectors of the global digital printing and packaging markets. MGI Digital Technology anticipates a strong acceleration in growth which should enable it to exceed € 100 million in revenues by 2020.
Increased equity investment of Konica Minolta which values the MGI Digital Technology Group at more than € 200 million
In order to cement further this ambitious joint project, Konica Minolta has strengthened its ownership stake in MGI Digital Technology with the purchase of 1,662,651 shares, representing the 30.21% stake held by the family shareholders.
Konica Minolta first took a 10% minority ownership position in MGI Digital Technology in January 2014 by subscribing to a capital increase. Following this new transaction, Konica Minolta will now hold a 40.76% stake in MGI Digital Technology.
The transaction, effective April 1, values the company at € 209 million or € 38 per share, a premium of 31.31% over the closing price of March 31, 2016.
Following the transaction, the shareholding of MGI Digital Technology (1) shall be the following:
- Konica Minolta 36.21%
- Management 9.15%
- Public 54.64%
Edmond Abergel, President of MGI Digital Technology said: "I am particularly pleased to enter this new stage in our alliance with Konica Minolta. During our first two years of partnership, Konica Minolta has had the opportunity to gauge the innovation capacity and the commercial drive of MGI Digital Technology. On our side, we realized the depth and breadth of the Konica Minolta distribution network worldwide. A few months prior to DRUPA, the world major trade exhibition in the graphic arts industry, this agreement will, I believe, enable us to accelerate our development by boosting our visibility and commercial presence internationally."
“We have been honored to work alongside the Abergel Family to crystallize the value of their stake in MGI Digital Technology. This transaction illustrates Bryan Garnier’s ability to assist companies operating in highly innovative industries such as digital multi-substrates and intelligent 3D printing” said Philippe Patricot, Managing Director at Bryan, Garnier & Co.
Olivier Beaudouin, Head of the European Technology Franchise at Bryan, Garnier & Co, adds: “This is one more milestone transaction for our industrial technology franchise and further demonstrates our international reach to the most relevant strategic buyers””
Participants:
MGI Digital Technology: Edmond Abergel, Victor Abergel, Michael Abergel
Bryan, Garnier & Co: Philippe Patricot (Managing Director), Marc Goudemand (Director), Marc-Antoine Serfaty (Analyst)
About MGI Digital Technology (www.mgi-fr.com)
MGI Digital Technology is a
French company founded in 1982. It designs, manufactures and markets in France
and abroad a comprehensive and innovative range of digital multi-substrates,
color presses (paper and plastic) and a line of high end-finishing products
dedicated to Paper & Plastic.
MGI Digital Technology generates more than 70% of its revenues internationally and has maintained an annual double-digit growth over recent years. MGI Digital Technology is a major player through a portfolio of thousands of clients in very diverse sectors: Graphic industry professionals, Key accounts, large government entities , industrial plastic cards, Label & packaging, Photo labs, etc ... Since 2013, the Group has entered the promising market of Functional-Printed Electronics and Intelligent 3D printing with the acquisition of CERADROP. MGI Digital Technology is a public company listed on Alternext since 2006. Based on a historically recognized technological innovation and expertise, MGI Digital Technology has the BPI label of "Excellence".
About Bryan, Garnier & Co (www.bryangarnier.com)
Bryan, Garnier & Co is an
independent investment bank specialized in European TMT, Healthcare and
Renewable Energies growth companies. Bryan, Garnier & Co is positioned in
three activities: Equity Research & Brokerage, Asset Management and
Corporate Finance. Bryan, Garnier & Co has become a leader in advising
European growth companies on strategic finance transactions such as mergers
& acquisitions, equity capital market, LBOs, IPOs and private placement.
With more than 150 professionals based in London, Paris, Munich, Geneva, New
York and New Delhi, Bryan, Garnier & Co combines the range of services and
the expertise of top-tier investment banks with the level of attention to clients
of a boutique.