CITO-SYSTEM and the Bobst Group have entered into exclusive negotiations to accelerate the transformation of packaging production
Bobst Group SA, Mex/Switzerland, and CITO‑SYSTEM GmbH, Schwaig/Germany, have entered into exclusive negotiations regarding a potential joint venture between the two companies. Bobst Group SA plans to acquire a majority holding in the German company. The intention is for CITO to continue to be run as an independent company under its existing management. The management will retain a substantial share of the company. The joint strategy of BOBST and CITO is to provide end-to-end solutions for the production of packaging. BOBST recognizes the critical importance of tooling for an agile and sustainable packaging production chain. In a fast-changing world, the BOBST and CITO-SYSTEM partnership will leverage the strengths of both companies to drive innovation in tooling and more globally in packaging production worldwide.
The proposed transaction is subject to the parties reaching a definitive agreement, with the closing of the transaction expected to occur in the first quarter of 2020. Even if a definitive agreement is reached, the transaction may be subject to customary regulatory approvals and potentially other conditions. There is no assurance, however, that any definitive agreement will be reached or that the closing of the contemplated transaction will occur.
BOBST Group SA
is one of the world’s leading suppliers of substrate processing, printing and converting equipment and services for the label, flexible packaging, folding carton and corrugated industries. Founded in 1890 by Joseph Bobst in Lausanne, Switzerland, BOBST has a presence in more than 50 countries, runs 14 production facilities in 8 countries and employs more than 5 600 people around the world. The Group recorded a consolidated turnover of CHF 1 635 million for the year ended 31 December 2018.
Even if the joint venture is concluded, CITO will remain an independent company with its own, strong brand. The management will remain constant and the CITO GROUP will continue to be run in the coming years by its current CEO, Jürgen Mariën. He will also continue to be associated with the company as a shareholder and in the future will also hold an extensive share package. The complete second management level will also remain as shareholders in the CITO GROUP. This secures long-term continuity as a Partner for Success.
Schwaig/Germany, 16 January 2020