INDUSTRY NEWS
INTERNATIONAL
NEWS
New Fuji Xerox Combined
Company To Unlock Significant
Growth And Productivity
Opportunities
Fujifi lm Holdings Corporation and Xerox Corporation
have announced that they have entered into a
defi nitive agreement to combine Xerox and their
longstanding Fuji Xerox joint venture. The combined
company will be a global leader in innovative print
technologies and intelligent work solutions with
annual revenues of R213 billion ($18 billion) and
leadership positions in key geographic regions.
The transaction has been unanimously approved by
the boards of directors of both Fujifi lm and Xerox.
The combined company will be named ‘Fuji Xerox’
and trade on the NYSE under the ticker XRX. The
new Fuji Xerox will have dual headquarters in
Norwalk, Connecticut, U.S. and in Minato, Tokyo,
Japan, with presence in over 180 countries. The
combined company will go to market and maintain
the iconic ‘Xerox’ and ‘Fuji Xerox’ brands within its
respective operating regions.
This proposed combination provides Xerox
shareholders with signifi cant cash at closing, as
well as a substantial interest in the signifi cantly
enhanced combined company. Under the terms of
the agreement, Xerox shareholders will receive a
R29.6 billion ($2.5 billion) special cash dividend, or
approximately R116.3 ($9.80) per share (1), funded
from the combined company’s balance sheet, and
own 49.9% of the combined company at closing.
The cash dividend represents more than 30% of
Xerox’s unaffected share price of R360.26 ($30.35)
based on closing share price as of January 10,
2018. Fujifi lm will own 50.1% of the combined
company and provide important operational support
and transformational leadership.
Shigetaka Komori, chairman and chief executive
www.AfricaPrint.com
offi cer of Fujifi lm, said, ‘Fujifi lm and Xerox have
fostered an exceptional partnership through
our existing Fuji Xerox joint venture, and this
transaction is a strategic evolution of our alliance.
The Document Solutions business represents
a signifi cant part of Fujifi lm’s portfolio, and the
creation of the new Fuji Xerox allows us to more
directly establish a leadership position in a fast -
changing market. We believe Fujifi lm’s track record
of advancing technology in innovative imaging and
information solutions, especially in inkjet, imaging,
and AI areas, will be important components of the
success of the new Fuji Xerox.’
Komori added, ‘I am confi dent that Fujifi lm’s
ability to drive change as well as its experience of
successful reinvention will give a competitive edge
to the new Fuji Xerox, delivering signifi cant value
creation to shareholders of both the new Fuji Xerox
and Fujifi lm. We are delighted to welcome Xerox
and its employees to the Fujifi lm family and look
forward to combining our strengths towards jointly
shaping the future of our industry.’
Jeff Jacobson, chief executive offi cer of Xerox
said, ‘The proposed combination has compelling
industrial logic and will unlock signifi cant growth
and productivity opportunities for the combined
company, while delivering substantial value
to Xerox shareholders. The new Fuji Xerox
will be better positioned to compete in today’s
environment with truly global scale, increased
presence in fast-growing markets, and innovation
capabilities to effectively meet our customers’
rapidly-evolving demands. In addition, the
combined company’s strong fi nancial profi le will
enable investments that support continued market
leadership, while also providing opportunities for
increasing capital returns over time.’
(1) Based on diluted shares outstanding as of
January 31, 2018, assuming no conversion of
preferred shares.
www.xerox.com and www.fujifi lm.com
business, parts manufacturing and the foundry
business.
The Kolbus bookbinding business will be
transferred to the new company Müller Martini
Buchbinde-Systeme GmbH, which will be
integrated into the Müller Martini Group as an
independent plant based in Rahden along with
all the associated employees. Kolbus remains
under the leadership of CEO Kai Büntemeyer and,
with 900 employees worldwide, focuses on the
production of packaging and book cover machines,
part production and the foundry business. Kai
Büntemeyer is convinced that with this step Kolbus
will be able to create good opportunities for a
successful future.
The know-how for the Kolbus machine range is
taken over, backed up and further developed by
Müller Martini. The approximately 250 Kolbus
employees from the bookbinding area will be taken
on in Rahden by Müller Martini on unchanged
terms of employment. Employees in the Packaging
and Book Cover Machines divisions continue to
work at Kolbus.
‘Structural change has changed the graphics
industry in recent years, and our market has
become much smaller and more diverse,’ said
Bruno Müller, CEO of Müller Martini. ‘Customers
demand regular innovations, which must be
fi nanced with lower sales quantities. Above all, our
customers benefi t from the effi ciency gains from
the merger of bookbinding activities.
The market changes have a direct impact on
customers facing new business models such as
digitisation. By bringing together the potential for
success of the two companies, such as personnel,
know-how, technology and infrastructure, Müller
Martini can provide the market with innovative
solutions in the long term even better.
‘This will secure the future of our customers'
softcover and hardcover business - and thus jobs in
the graphics industry,’ said Müller.
Müller Martini Announces Kolbus
Takeover
Müller Martini has announced its takeover of the
Kolbus binder and bookline business, including
service and spare parts for all Kolbus bookbinding
systems installed worldwide. Kolbus focuses on
the packaging and book cover vending machine
www.mullermartini.com
AFRICA PRINT JOURNAL
FEBRUARY/MARCH 2018
PG 17