Esko, a global developer of integrated software and hardware solutions for the packaging, label and wide format sectors, has announced the planned sale of its Kongsberg digital finishing business to OpenGate Capital, subject to consultation with employee representative bodies.
The planned sale includes the original research and development facility in Kongsberg, Norway, and the production facility in Brno, Czech Republic. OpenGate Captial is a private equity firm headquartered in Los Angeles, with investments on five continents.
“I am confident that OpenGate will be a strong, strategic home for Kongsberg, and that the employees who will transfer with the business will thrive in their new home,” said Mattias Byström, President of Packaging and Color Management Companies Pantone, Esko, X-Rite and AVT.
Customers with Kongsberg systems can expect business as usual, since most of the employees who currently serve them would continue to do so as part of the new stand-alone business.
Reseller relationships would also be transferred to Kongsberg PCS (Precision Cutting Systems), meaning customers who purchased Kongsberg tables through resellers would also benefit from uninterrupted relationships.
The new Kongsberg PCS company would be led by Stuart Fox, future President of Kongsberg PCS.
Mr Fox is one of many seasoned digital finishing experts moving from Esko to outfit the Kongsberg PCS leadership team.
“We are excited about this change and the new opportunities it brings for Kongsberg to accelerate growth with new customers,” he said.
OpenGate Capital sees opportunities for growing the Kongsberg business beyond packaging applications, expanding the product offering and growing the tooling and consumables offering.
To date, OpenGate Capital, through its legacy and fund investments, has executed more than 30 acquisitions including corporate carve-outs, management buyouts, special situations, and transactions with private sellers across North America and Europe.