Goss International’s Chinese partner in its Shanghai Goss Graphic Systems joint venturehas taken advantage of the global financial crisis to stitch together a deal unde which it will become its second largest shareholder.
Reports that Shanghai Electric would buy into Goss were confirmed this morning with an announcement that Shanghai Electric and Goss shareholders including majority shareholder MatlinPatterson Global Opportunities Partners, have reached an agreement for the utility and equipment manufacturing conglomerate to become the second largest shareholder of the newspaper and web press manufacturer by acquiring newly-issued shares of Goss International preferred stock.
MatlinPatterson had held 85 per cent of Goss, with Heidelberg holding most of the remaining 15 per cent following the 2004 deal under which it sold its web press and bindery systems divisions to Goss. It is expected that the Heidelberg will remain a substantial shareholder in Goss although its interest may be diluted as a result.
Goss says its proposed transaction is currently under governmental review for final approval and is subject to other customary conditions to closing. Terms have not been disclosed.
Shanghai Electric and Goss International have a successful, longstanding relationship through the Shanghai Goss Graphic Systems joint venture company of Goss International and another SEC subsidiary, Shanghai Electric Printing and Packaging Machinery Group.
Established in 1993, the SGGS joint venture company produces several Goss web press models for the global market, including its Community and Magnum single-width lines.
“The Goss International organisation delivers products with superior levels of innovation and value to printers and publishers throughout the world,” Chen Daxiong, chairman of SPPM, says. “We are committed to continuing this mission and investing resources to enhance Goss International’s current market and technology leadership positions.
“We have been working together successfully for many years and are excited about the opportunity to increase our involvement in the business.”
Goss International chief executive Jochen Meissner says Shanghai Electric has an industrial focus, a global outlook and a strong commitment to the print sector. “The investment in Goss International will bring additional strength and financial resources to our business.
“This will further enhance our ability to innovate, execute and deliver value to customers through a unique, worldwide manufacturing and support platform that includes operations in Asia, Europe and the USA.”
Goss generated more than US$3.3 billion in sales in the three-year period from 2006 to 2008.
Shanghai Electric Corporation is one of the largest equipment manufacturing groups in China and controls a number of domestic and overseas listed companies, including Shanghai Electric Group Company, Shanghai Mechanical and Electrical Industry Company, Shanghai Highly (Group) Company, Shanghai Automation Instrumentation Company and Shanghai Prime Machinery Company.
Through its listed subsidiaries, SEC operates in industries including power generation and transmission, mechanical and electronic systems, heavy machine tools, transportation equipment, environmental protection equipment, automatic instrumentation, and refrigerating compressors industries.
Earlier this month it was announced that Goss president Dick Sutis would retire in July after 44 years of service, while remaining as vice chairman of the Shanghai Goss Graphic Systems board and as a director of Goss Graphics Systems Japan.