Würzburg, Dobruška / German press manufacturer Koenig & Bauer AG (KBA) has agreed to purchase Czech counterpart Grafitec, spol. s r.o. for an undisclosed sum, from American investment fund Charles Investment Partners and minority shareholders.

The acquisition, yet to be approved by the relevant monopolies commission, is part of a strategic expansion drive in the small-format sheetfed offset market. The acquisition builds on the dynamic growth now being experienced in KBA's global sales of medium- and large-format presses. The Czech Republic's lower business costs and its accession to the EU make it an attractive location for plant manufacture and assembly.

Based in Dobruška, near Hradec Králové, Grafitec employs 400 people. Over the past few years Grafitec has focused considerable resources on product development driving year-on year sales growth of over 50 % in 2004. Key markets for its Polly Prestige and Polly Performer presses for a sheet size 520 x 740 mm (201/2" x 29") and 485 x 660 mm (19" x 26") respectively are Europe and the USA. At the Drupa 2004 print media trade fair the company launched a new generation of the Polly Prestige 74DE for 2, 4, 5 or 6 colours plus optional coater, with which it is targeting medium-sized printers an further expansion in Latin America and Asia.

Grafitec's product line will complement KBA's Rapida 74, Rapida 74 G and 74 Karat whose higher level of automation, broader choice of substrates (including plastic and board), inline finishing options and configurations (long perfectors) address the high end of the market. The Polly series targets small to medium sized printshops, printers in emerging markets and new players in the classic multicolour commercial market - three areas where KBA sees enormous potential for growth.

Peter Skrla, Grafitec's CEO, comments: "The transaction gives Grafitec a strong parent company with significant financial, R&D, and distribution resources. This will allow the company to continue its impressive sales performance and improve its manufacturing base, while continuing its strong customer focus."

Albrech Bolza-Schunemann, President and Chairman of KBA, comments: "Grafitec strengthens our strategic position in small-format presses in general and our position in Central and Eastern Europe. We believe we will be able to continue to service and further grow Grafitec's customer base."