- schlott gruppe focuses on print as core business segment
- Investment bank retained to manage sale of direct marketing business unit
Freudenstadt, January 23, 2007. schlott gruppe has taken the strategic decision to dispose of its direct marketing business unit and reinvest freed-up funds within its core print segment. Consequently, the company today retained an investment bank to find potential buyers for the direct marketing business unit.
Consolidation within the European gravure-printing industry has become more dynamic recently. This in turn will open up new possibilities for schlott gruppe to continue its well-established strategy of corporate acquisition and to further expand its current market share of 11.2 per in Europe in the medium term.By disposing of the direct marketing business unit, the company is looking to realise hidden reserves, scale back bank borrowings and unlock management capacity. Thus, schlott gruppe is poised to take its position for the next stage of growth within the European gravure-printing market.
The direct marketing business unit has undergone a successful market realignment in recent years, an approach that has provided access to new customer groups. At the same time, the company has reduced costs within this segment by a significant margin and has enhanced efficiency levels. The business unit has emerged from this regimen reinvigorated and focused on future growth.
The coming liberalisation of the postal market from 2008 onwards is likely to bring about a significant reduction in stamp prices, thus generating a substantial boost to growth in the area of advertising mailshots. As one of the largest direct-marketing specialists in Europe, meiller direct, the direct marketing subsidiary of schlott gruppe, is considered to be an attractive partner to companies planning to position themselves in this growth market.
schlott gruppe will be publishing its 2005/6 annual report tomorrow, Wednesday, January 24, 2007, as well as announcing its preliminary results for the first quarter of 2006/7. The rationale behind the company's decision to focus on the print segment and the opportunities associated with this move are to be discussed at the Financial Statements Press Conference in Stuttgart at 10 a.m. (CET) and the DVFA Conference in Frankfurt at 2.30 p.m. (CET).
