The rapid rise, sudden decline and subsequent sale of digital wide-format printer manufacturer Gandi Innovations reveals the challenge of maintaining momentum in a competitive marketplace. After operating under creditor protection for the past six months, the fate of the Mississauga, Ontario-based company has been resolved, as Agfa Graphics, headquartered in Mortsel, Belgium, has agreed to acquire most of Gandi’s assets and its foreign subsidiaries.
Agfa currently sells and supports its own line of large-format inkjet systems (the Anapurna flatbed UV inkjet printers and its industrial M-Press systems) and manufactures inkjet inks. The acquisition of Gandi will give the company instant access to a significant installation base worldwide (solvent ink and UV-based ink systems), propelling Agfa to among the global leaders in this space.
Gandi Innovations, founded by brothers James and Hary Gandy in 2001, experienced vigorous growth in terms of sales and product line expansion over its first six years. By mid-2005, operating out of a 110,000 sq. ft. factory in Mississauga, the company was shipping 15 to 18 machines a month and was anticipating sales of around $45 million for the year.
In 2007 the company relocated into a nearby 280,000 sq.ft. space and reached a sales peak of US$127 million in 2008. Results in 2009 took a blow due to the economic downturn and led to the company’s uncertain future. The Gandi group employs 256 people worldwide through sales offices and distributors, and although the company had great initial success it was competing in a market with some much larger players including HP, EFI and Fujifilm. The broad distribution, brand recognition and marketing power of Agfa should benefit the organization.
"The combination of Gandi Innovations’ products and Agfa Graphics’ products will result in substantial growth for our inkjet business based on an even more complete system portfolio," said Richard Barham, Agfa Graphics’ vice president inkjet in a prepared statement. "This is an important step in implementing our inkjet growth strategy. As our own portfolio consists of entry-level and high-end inkjet systems, Gandi Innovations’ mid-range systems are a 100 percent complementary fit with our existing inkjet technology."
The acquisition remains subject to regulatory and court approval. The price of the transaction has not been disclosed.
