Effective 1 July 2017 Print-Rite has acquired the assets of Pelikan Hardcopy and will have the exclusive rights to manufacture high quality, unique patent safe cartridges using the Pelikan Brand under a 30-year licensing agreement.
Pelikan International Corp Bhd has agreed to dispose of its underperforming hardcopy supplies business for RM30 million (€6.1 million / $6.9 million) to the Print-Rite group. The sale includes subsidiaries involved in the manufacturing, sales, and distribution of hard copies supplies and is also disposing of its businesses in Germany, France, Czech Republic and China.
Sales at the hardcopy supplies division were RM123.1 million (€25 million / $28.6 million) which is about 9% of group revenue in the year ending December 2016. The group said the business had not fared well in the past years due to declining volume and changes in the market, and that it had to undertake several reorganisation exercises to ensure the value of the business is still maintained to allow future monetisation of the business.
Proceeds from the sale will be utilised to defray the cost of staff terminations and plant closures estimated at RM11 million (€2.2 million / $2.5 million), whereas the remaining will be used for working capital to wind-down operations of the subsidiaries of the disposed business.
Pelikan Hardcopy will transfer all current trading to two new companies, one in Germany and the other in France, both of which will trade as PRP Solutions, leveraging the strength of the Pelikan brand and its sales and customer service are critical components in the development of reliable business over the years, Print-Rite is committed to enhancing the service for new and existing customers.
Pelikan has a strong reputation in the European market as a supplier of high quality, IP safe aftermarket printer consumables and Print-Rite was considered the obvious and best partner in the industry able to maintain and enhance this reputation. Print-Rite has over 2,600 patents and operates with an emphasis on quality and non-infringing IP products at the highest level.
“This is an important strategic collaboration for the two highly reputable companies,” said Arnald Ho, founding chairman of the Print-Rite Group. “We expect to deliver more superior and reliable products with this powerful agreement, a new chapter of the whole compatible hard copy supply industry has opened” said Arnald Ho.
Print-Rite, famous energetic brand from China, has extensive resources and manufacturing facilities as well as a broad and growing product portfolio. Its focus on the hardcopy industry has been built over a 35-year history as a leading supplier to markets across the globe. Recently Print-Rite was awarded the distinction as one of the top 100 companies in China for innovation across all industries and sectors.
Pelikan said “intends to focus on the core stationery” products business and seeks to cut losses from its printing consumables division. The disposal will also result in a stable income stream through royalty earned from trademark licensing arrangements.”