Six printing companies plan biggest industry merger

Six printing companies are set for a merger to deal with emerging challenges in the printing industry.

The merger involving Colourprint Limited, Digital Hub Limited, Kul Graphics Limited, Printfast Limited, The Print Exchange Limited and The Rodwell Press Limited will be the first kind of business transaction in the industry.

The companies' boards of directors on Thursday announced they were in the final stages of the discussions, expected to complete by the end of next month.

The closure of the businesses will be subject to approval by the Competition Authority of Kenya.

“During this transition phase, the Companies will continue to operate independently and there will be no disruption to the delivery of goods and services,” the directors said in a joint statement.

The expected merger has been forced by operational and financial challenges facing all players in the industry, including a competitive landscape and a rapidly changing marketplace that is increasingly price sensitive and demands continual technological innovation.

“The Boards and shareholders of the Companies have therefore decided to join forces in order to ensure their viability and be better placed to respond to the demands of the current business environment,” the statement read.

The merged entity will offer a range of off-set, digital and large format print, packaging and finishing services, promotional branding products and services.