FLEXO RIVALS CONSOLIDATE IN $485M DEAL

Flexo plate developer Xsys has bought rival MacDermid in a $485m (US$325m) deal, and appointed a new CEO to run the enlarged operation.

The acquisition is expected to be completed later this year or early next. The deal gives MacDermid a thick plate, and offers Xsys a thin plate. The new operation will be one of the world's two biggest flexo plate manufacturers.

MacDermid, which manufactures its plates in the US, has an ANZ operation, based in Melbourne under the leadership of long-time general manager Anthony Dalleore. Xsys plates are distributed here by Ferag. Dalleore said, "There will be no change on the ground at least until the deal goes through."

MacDermid Graphics Solutions makes flexo plates and platemaking equipment, and says it is the market leader in liquid photopolymer platemaking.

Xsys makes flexo and letterpress plates and associated imaging equipment, with brands including Nyloflex and Nyloprint. It is based in Stuttgart, Germany.

Xsys was formerly the pre-press arm of the Flint Group, but was sold to private equity firm Lone Star Funds three years ago. At the time it had sales of almost $500m.

The new CEO by Dr Alexander Unterschütz, he replaces Oliver Dohn, who was CEO for just 11 months. Xsys said he was leaving to “pursue other interests” and thanked him for playing a key role in driving profitable growth “and setting a new strategic growth and innovation agenda” at the business.

Unterschütz joins after 14 years working in senior roles at German industrial gases and engineering group Linde. Prior to Linde, he worked as a management consultant with McKinsey & Company.

He said, “I am excited about the combination of Xsys and MacDermid. Both businesses have highly complementary geographic footprints and product portfolios, which will enhance the Xsys product offering and service levels, as well as drive innovations to serve our customers.”