The Augsburg-based newspaper and web press operations of insolvent German maker manroland is set to be sold to German conglomerate Possehl under a deal approved by creditors yesterday.

Insolvency administrator Werner Schneider told financial journalists that investors were still sought for the Offenbach and Plauen, with a “new round” of talks following in a bid to meet the January 31 deadline set for insolvency proceedings. Management will initially take over these operations.

Almost half of the German workforce - 2200 of the 4700 total - will lose their jobs but those in Augsburg, where 700 jobs will be lost, fare very slightly better.

Schneider said Shanghai Electric Group – which owns web press rival Goss International and also sheetfed press maker – had been interested in buying the whole of manroland, and might still be interested in bidding for the Offenbach plant.

US-headquartered buyout firm Platinum Equity is reported to have offered 100 million Euros for the whole operation, but Schneider said Possehl, based in Luebeck, was faster and had already held negotiations with worker representatives.

Several companies have said they are interested in the Plauen site, which is likely to have a role in supplying parts to Augsburg, but will not be taken over by Possehl.

Talks have already been held about the state of Hesse providing loan guarantees to secure Offenbach's future.

“It is a common goal to pass the company on to investors that are interested in a long-term and independent continuation of the company,” Schneider told journalists.

In Augsburg, 1,500 of 2,200 workers will be able to keep their jobs, while in Offenbach the number will be reduced to 750 from 1,760. Plauen will keep 290 positions from 680, Schneider said.

Established in 1847 as an iron and coal trader, L. Possehl & Co – www.possehl.de – is a company in the Hanseatic trading tradition. Its owns more than 130 companies in nine, highly diversified divisions, and has more than 8500 staff around the world. Almost half of these are in Germany.

“In managing our companies, we are eager to ensure that our companies retain their long-standing identities and continue to develop successfully within our group,” it says in a statement on its website. Our companies enjoy a great deal of independence in the way they operate on the market.

Possehl's perception of itself is marked by entrepreneurial spirit, tradition, and responsibility, and financial results show a run of success and growth in recent years.

In 2010 it reported consolidated net profit of 58 million Euros on sales of 1.7 billion Euros split almost equally between Germany and the rest of the world. Its balance sheet valuation is 966 million Euros, up 20 per cent on the previous year.  Sales had increased 40 per cent with consolidated net profit increasing more than fivefold from 11 million Euros.

Divisions cover special purpose construction (including road surfacing and civil engineering), precious metals processing, equipment for rubber and elastomer processing, electronics, international trading, mailroom systems, cleaning systems, textile finishing systems, and a variety of SME investments.

It bought enveloping and mailroom equipment maker Böwe Systec in 2010.

Other brands include Hako cleaning machines (Minuteman and PowerBoss in the USA).

• Following is the statement issued by the administrator late Thursday:

The creditors’ committee under the guidance of provisional insolvency administrator Werner Schneider and chief representative of manroland Dr. Frank Kebekus was able to reach an amicable solution for an investor concept in the course of the company’s insolvency proceedings.

During the meeting, which took place on Wednesday in Augsburg, the solution to divide the company into three independent units turned out to be the preferred solution. “Our shared goal was to place the company in the hands of investors who are interested in its long-term, independent continuation”, Werner Schneider explained after the meeting.

He cited the existing operating concepts, the planned absorption of employees, as well as the rapid implementation of sales contracts as the main criteria guiding the committee’s decision.
According to the concept, the Augsburg site (webfed printing systems), will be sold to the Possehl Group.

The family business from Lübeck in Northern Germany also plans to establish long-term supplier relationships with the manroland factory in Plauen in order to secure full capacity at that site. Prospects of a subsequent share in the Plauen factory are on the horizon.

The factory in Plauen will be outsourced as a new company. There are positive signs of the timely acquisition of further third-party orders, which will ensure the sustained survival of the Plauen factory.

The Offenbach site (sheetfed printing systems) will be restructured in the course of a management buyout in cooperation with an investor. This solution has a solid economic foundation and good future prospects – the financing concept does, however, require a guarantee by the federal state of Hessen. Talks have already been held on this matter.

All parties to the meeting agreed to remain silent on the purchase price for the company. In his statement, Schneider emphasized that the vote by the creditors’ committee was not a formal decision but rather a recommendation. A final decision will be reached in the meeting of creditors; the committee’s vote does, however, send a strong signal.

The current investor concept is tied to downsizing measures. The Augsburg site will employ 1473 regular staff; all apprenticeship positions will be maintained. 750 employees will work in Offenbach and nearly 300 at the Plauen site.