OEM unexpectedly cancels agreement with firm regarding narrow-web inkjet label presses.
WhatTheyThink reported on the “shock, seemingly arbitrary” move by US private equity owners to terminate Memjet’s OEM partner agreement with Rapid Packaging Servicesfor the development and manufacture of narrow-web inkjet label presses, despite the agreement being scheduled to run until 2017.
While Memjet reportedly “refused to say” why the agreement was terminated due to “commercial confidentiality”, a spokesperson from Rapid claimed they “have not been given a legitimate reason why” and have not been able to negotiate with Memjet management, which simply referred them to their lawyers.
The article added thatBruce Mansell, Founder of Rapid, asserted there had “absolutely not” been any outstanding commercial liabilities between the companies, adding that Rapid “have been paying in advance for print engines, heads, and ink. We have not been given any legitimate reason why Memjet is cutting us off after years of pioneering work deploying their technology in the digital label printing sector”.
Meanwhile, Memjet spokesperson Kim Beswick confirmed the termination of Rapid’s license to sell and service the company’s technology, but refused to give a reason; although she reportedly added that “there were ongoing negotiations”.
Commenting on the impact the decision may have on Rapid’s 250 Memjet customers, Beswick said she would find out how they could get in touch with Memjet and its resellers, but added that “those who need to know, know” and asserted that “no one would be left behind or stranded”. She said: “Although we regret that Rapid Labels is no longer an authorised Memjet partner, Memjet has over 30 OEM partners worldwide. It is only natural that there is some ebb and flow in our business relationships.”