Walstead has finally moved into Germany, acquiring Gotha Druck from the company’s administrator. The new acquisition becomes part of the group’s Austrian operations headed by Leykam.
Gotha is in Thuringia (midway between Frankfurt and Leipzig) and had sales close to €65 million in 2021. It filed for bankruptcy in February with Rolf Rombach appointed administrator to find some kind of a future for a business that employed 233. It is not clear how many will be retained by Walstead. It says it “will be taking on a large proportion of the Gotha workforce”.
“Despite difficult market conditions, we were able to gain a strategic partner in Walstead who will continue the business operations in Gotha over the long term,” says Rombach. “Continuing business operations was extremely difficult. Only through the intensive cooperation of all parties was it possible to maintain business operations.”
Those market conditions include the continuing decline in demand for long run print in Germany, which has led to the closure of several gravure plants and the consolidation of the web offset sector. The retail leaflets and flyers market has remained strong, however, and this is key to the production mix at Gotha, making it one of the largest printers of this style of advertising in Germany.
The business runs MAN Lithoman web presses, supported by a Sunday 5000 96pp machine that was installed in 2018. There are also two five-colour Manroland sheetfed presses and a Xerox digital press. All are located in a 21,500m2 factory with good connections east and west as well as north and south.
The business had been run by Jörg and Ralf Creuzberg, but with the rescue by Walstead Use Stadler, managing director of NP Druck, one of Walstead’s Austrian operations, becomes managing director.
Until now Walstead has serviced customers in Germany from plants in Austria, Slovenia and Czechia (the Czech Republic). Some of that work can now move to the new sister company. Stefan Gutheil, CEO of Walstead Leykam Druck, says: “Walstead’s strategy is to expand its manufacturing footprint in key European countries, of which Germany is the largest, and to continue increasing our share of retail advertising print.”
The move moves Walstead further up the league of European print groups. It already claims to be the largest independent printer in Europe and the leading consolidator. The strategy has been to pursue expansion if possible through production efficiencies rather than investment in new machinery. And to respond rapidly if necessary. At the end of last year it closed the smaller of the two Leykam Let’s Print sites, blaming rising paper and energy costs, while having bought assets of YM Group, and moved machinery rather than keep plants operational.
