We are advising Ekspress Grupp, the largest media company in the Baltic States, in selling the Printall printing house to Trükitung, a company related to its majority shareholder Hans H. Luik.
The group’s digital future
The Management Board of Ekspress Grupp has weighed the options for selling Printall as well as other alternatives since the end 2020. “In the course of the evaluation, more than 50 potential buyers were contacted. The best offer from the financial and strategic point of view was made by Trükitung, controlled by Hans H. Luik, shareholder and member of the Supervisory Board of Ekspress Grupp. The offer price is EUR 10 million,” explained Rüütsalu. Financial advisor Porta Finance was in charge of the evaluation process.
With the sale of Printall, Ekspress Grupp will exit the printing services market and will become a media company with an almost entirely digital revenue base. “In our business, the printing services segment has been declining in importance and Ekspress Grupp has primarily focused on digital revenue growth. The sale of Printall will make funds available for Ekspress Grupp than can be invested to support the growth of the digital business. In the 1st quarter of the current year, digital revenue already contributed 50% to Ekspress Grupp’s total revenue and after the exit from the printing services segment, it will be more than 70%. Post-transaction, Ekspress Grupp will become a modern media company with a large digital revenue base”, said Mari-Liis Rüütsalu.
The need for printing services will remain
Hans H. Luik stated that he decided to invest in the acquisition of Printall because he knows the printing business well and believes that despite the changes in the media market, the need for printing services will not disappear anywhere in the near future. “Under the current leadership, the business model of Ekspress Grupp has had a strong digital focus for the last several years and this transaction will provide the Group with financial means to make additional investments in this area. However, I consider it important that the paper products of Ekspress Grupp will retain a strong printing partner. At Printall, we plan to continue providing services to Ekspress Grupp at market conditions as well as offering high-quality printing services to other customers,” said Hans H. Luik.
The printing house Printall, established in 1971, has been a part of Ekspress Grupp since 1998. Prior to the execution of the transaction, the shareholders of Ekspress Grupp need to approve it. To this end, Ekspress Grupp will call an Extraordinary General Meeting of Shareholders on 13 July 2021. Neither Hans H. Luik nor the companies under his control can vote in the Extraordinary General Meeting.
Our services and client team
We have been advising Ekspress Grupp throughout the transaction process. Our client team is led by partner Toomas Prangli, supported by senior associate Robin Teever and associate Nele Suurmets.