Xeikon and Flint Look to the Future
By Noel Ward, Managing Director, Brimstone Hill Associates
In an age of constant acquisitions and consolidations in all industries the recent acquisition of Xeikon by Flint Group offers up interesting potential for both companies.
I caught up with Xeikon CEO Wim Maes, Global VP of Marketing Patrick van Baelen and Marketing Director Danny Mertens on a three-continent phone call to get the Xeikon side of the story and what it means. It is not the first change in ownership at Xeikon, but this latest one is the most significant–and promising
Back 1993, Xeikon rolled out one of the first true digital color presses, and with archrival Indigo, launched a revolution in color printing technology. Xeikon changed owners and partners over the past 22 years, while continually evolving its unique continuous feed print engine that images both sides of a page at the same time, enabling prints of essentially unlimited lengths. The technology has expanded beyond production printing to encompass applications such as wallpaper, posters, labels and folding cartons. While different versions of the technology are used in each segment, this versatility has become a hallmark of this small Belgian company that’s tucked away on a side street in an Antwerp suburb.
A strategic move
Under the acquisition, Xeikon will be an independent operating unit within Flint–the digital print solutions division. Wim Maes will continue as CEO and be part of the executive management group for both companies.
The Flint Group alliance is a win for both organizations, giving Flint a brand-name entrée into digital printing with proven technology, and providing Xeikon new clout as it expands its reach into markets and prospects that have long been bastions of conventional print technologies.
Maes and van Baelen emphasized that this is not a financial acquisition or an integration exercise. It is very much a strategic move to help both companies grow while focusing on customer needs and expanding the firms’ product and service offerings.
It is a proactive move for Flint, providing a proven line of digital brand name products and services for a global customer base. While some Flint customers already have digital printing capabilities, being able to turn to a single known supplier for digital presses, software, workflow, and consumables should be a compelling advantage. And, in a world where one-stop-shopping has tremendous appeal, adding high-end digital print options in multiple segments is a smart way to gain a larger share of customers’ wallets.
Although Flint is a consumables supplier, it is too early to say how the company may be involved in manufacture of toners used in Xeikon presses, including the Trillium liquid toner press that will roll out in 2016. Stay tuned for more details in the coming months.
Increased presence
The acquisition is equally advantageous for Xeikon. Smaller than some of its competitors, the Belgian company has lacked the market presence and high brand recognition to take an aggressive stance when entering new markets. This should change with Flint, which plays in all forms of conventional printing on six continents. With Flint’s backing, Xeikon can cast a wider net and more easily connect with print service providers who were previously out of reach.
“Entering new markets is not easy,” notes van Baelen. “Being part of Flint will open doors.”
Some of these doors may be in the labels segment, where Flint has a significant presence. Right now, about half of Xeikon’s business comes from label printing. Label printers and converters are increasingly adding digital presses to their equipment mix to accommodate shorter run lengths and SKU proliferation. For some converters eyeing a shift to digital, Xeikon may be much more appealing with the backing of Flint Group than it would on its own.
While it is far too early to tell how this will all play out, this is a new chapter for both companies. “We don’t yet know all that this will offer,” says van Baelen. “But we believe it is a journey that will bring both companies more value than is apparent right now.”
