Six Kenyan printers eye merger as going gets tough

Six Kenyan printing companies announced on Thursday that they are exploring the possibilities of merging into one entity.

In a joint statement, the Boards of Directors of Colourprint Limited, Digital Hub Limited, Kul Graphics Limited, Printfast (K) Limited, The Print Exchange Limited, and The Rodwell Press Limited said they are in the final stages of exploring the potential merger.

“Subject to applicable regulatory approvals being received and other conditions being met, the transaction is expected to complete by the end of June 2019, paving way for the phased transfer of the Companies’ commercial printing operations to the newly merged entity(ies). During this transition phase, the Companies will continue to operate independently and there will be no disruption to the delivery of goods and services,” the statement added.

The six firms acknowledged that the printing industry in Kenya has been facing considerable difficulties due to an extremely competitive landscape and a rapidly changing marketplace that is increasingly prices sensitive and demands continual technological innovation.

“This has resulted in significant operational and financial challenges for all players in the industry. The Boards and shareholders of the Companies have therefore decided, subject to regulatory approvals, to join forces in order to ensure their viability and be better placed to respond to the demands of the current business environment,” they said

The merged entity(ies) will offer a full-range of off-set, digital, and large format print, packaging and finishing services, as well as promotional branding products and services.

“Further details on next steps will be communicated to all stakeholders in due course upon receipt of regulatory approvals and completion of the transaction,” the statement concluded.

Colourprint, which was established in 1967, offers a variety of offset printing services and products. It is a key player in the printing of corporate calendars and election campaign materials.

Digital Hub, which was started in 2012,  offers high quality multi-colour Digital and Offset printing.

Kul Graphics, which has been in existence for over three decades, provides pre-press and printing services while The Print Exchange,  which started its operations in 2007, offers, among others, printing and UV coating services.

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Printfast, which was started in 1972, provides design, printing and all final finishing services.

Founded in 1957, The Rodwell Press Limited provides printing services to clients in the East & Central African region. It is a partner with The Print Exchange.