For immediate release:
Contact: ยทยทยท@harlequin.com
GLOBAL GRAPHICS ACQUIRES HARLEQUIN
Pompey, France; July 12, 1999
GLOBAL GRAPHICS (EASDAQ: GLGR), the leading worldwide supplier of
plate-processing equipment for the graphic arts industry, announced today
that it has successfully completed the acquisition of Harlequin Group for
a purchase price of 18 million Euro.
Following completion of the acquisition, Global Graphics gave immediate
assurances that Harlequin's greatest asset, its highly talented UK and US
personnel base, would continue to be fully supported.
Johan Volckaerts, Chairman and CEO of Global Graphics said, "the Harlequin
name is an printing and publishing icon and the excellence of its
technology is recognised throughout the whole industry. Such success has
been due to the recognised brilliance of its software development teams
and the unflagging efforts of all the staff. This has been a difficult
time for them and we acknowledge their loyalty and belief in the company.
"Our goal is to strengthen Harlequin, not to change the very origins of
its success. The acquisition will therefore ensure Harlequin's financial
stability and will provide the means and support to continue to nurture
the innovative approach for which Harlequin has become famous."
Global Graphics will operate Harlequin independently from other group
manufacturing operations. A priority consideration is to invest in a new
management infrastructure and those management skills that Harlequin
lacked in the past to accelerate the development of the group's digital
solutions and applications.
Under the new organisation, Harlequin's management team will report
directly to Andrew Brian, Global Graphics UK managing director. Mr. Brian
recognises the strong role the OEM sector will continue to play in the
on-going success of Harlequin. "We look forward to working with our new
OEM partners, some of whom are long-standing customers of other group
companies. We will be meeting all OEM partners in the coming weeks to give
them our firm assurance that there will be no change in our service and
support structure and that there will be no preferential treatment for
group companies."
To the surprise of many in the industry, Harlequin was forced into
receivership on July 6. Despite this, the Digital Print and Publishing
(DP&P) business was profitable with estimated EBIT (Earnings Before
Interest and Tax) of 5.2 million Euro on sales of 21 million Euro. Global
Graphics is currently assessing Harlequin's recent investments in the
Information Management and Software Tools business to determine
opportunities and strategic direction.
Following extensive restructuring by Harlequin at the end of last year,
staffing was reduced to approximately 140 with offices retained in the US,
the UK (HQ in Cambridge) - rationalisation which marked a return to
profitability for the company. As a result, Harlequin is expected to
generate revenue of approximately 30 million Euro and EBIT before goodwill
amortisation of around 7.5 million Euro for the 12 months ending March 31,
2000.
Established in 1986, Harlequin offers a diverse array of products and
services including digital printing and publishing technology, information
management systems, software development and delivery tools and TV, film
and post production technology.
Global Graphics is an independent company that develops, manufactures and
distributes a broad range of high-performance process equipment dedicated
to meeting the needs of the graphics arts industry. Other companies in
Global Graphics UK include Heights Technologies Ltd. and ICG. The
company's common stock is listed on the EASDAQ Stock Exchange.