After agreeing the takeover of an Italian flexo press manufacturer, KBA is pushing further into packaging with the acquisition of luxury systems maker Kammann.

The deal - in which KBA will replace current private equity shareholders - continues moves to counteract the shrinking sales of web presses for publications heavily affected by the advance of online media.

While details are not being disclosed, KBA will become the majority shareholder with 85 per cent of Kammann Maschinenbau in Bad Oeynhausen, Germany, a world market leader in screen printing systems for direct printing on glass containers.

The company says previous majority shareholder Perusa has successfully restructured and realigned this medium-sized press manufacturer over recent years. Kammann's two managing directors will continue to hold a 15 per cent stake. The acquisition is subject to minor formal conditions.

Kammann mainly offers presses for decorating hollow containers made from premium-quality glass, plastic and metal. Along with screen printing, Kammann's precise and flexible transport systems can also be equipped with hot-stamping, digital printing and decorating processes. It also has a substantial service business.

Founded in 1955 and with 175 employees, Kammann has "almost no production facilities" of its own. In 2012 it generated annual sales of over 30 million Euros ($39m) and posted a net profit.

Directly decorated glass containers are mainly used for cosmetics, perfume and spirituous beverages in the top price class. Premium glass packaging is a growing business even in threshold countries, such as China, Brazil and Russia. It is regarded as a differentiation medium and is continually gaining importance as a status symbol compared to cheaper alternatives.

Market forecasts predict above-average growth for this segment, KBA says. From a process point of view, direct printing with high-quality screen printing systems is the most challenging and costly finishing method due to the mechanic handling of different forms of glass containers. These technological demands prevent newcomers from entering this luxury segment which is serviced by very few manufacturers. On supermarket shelves directly decorated glass containers for premium perfume or beverage brands compete with more simply labelled containers for cheaper brands. These are often undervalued by customers looking for luxury goods. While direct printing of containers is a new territory for KBA, the group is already well-established in some areas of label printing and other packaging forms. "Management therefore views this acquisition as a useful addition," says a statement.

Picture: Kamman has 'almost no production facilities'