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Six printing companies merge to survive

Kenyan Business Feed by Kenyan Business Feed
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BRIAN NGUGI

By BRIAN NGUGI
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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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