Vistaprint NV has entered into a definitive agreement to acquire People & Print Group B.V.
People & Print Group, based in Deventer, the Netherlands, is comprised of several online printing sites focused primarily on the Dutch and Belgian markets, including its most well known site, Drukwerkdeal.nl. The company’s customers consist of local printers, design agencies and resellers, as well as small businesses that have the ability to create and upload graphic design files (as opposed to Vistaprint’s customers, who typically use online graphic templates). People & Print Group differentiates its offering in part by an emphasis on outstanding and personalized customer service levels. The company operates in the Netherlands and Belgium, with approximately 175 employees.
This acquisition combines the strength of People & Print Group’s production innovation and customer relationship expertise with the technology and manufacturing expertise of Vistaprint. Vistaprint currently plans to continue to grow the People & Print Group brands as an independent and focused set of brands that will remain distinct from Vistaprint in their value proposition and positioning. Over a multi-year period, the acquisition is expected to enable expanded product offerings for both Vistaprint and People & Print Group as products from the respective brands are introduced to the other. We also anticipate the combined company will have opportunities to improve customer value proposition and profitability over time through economies of scale.
“We are excited to welcome the People & Print Group team into the Vistaprint family,” said Robert Keane, president and chief executive officer of Vistaprint. “We believe its culture of customer centricity and product innovation, combined with Vistaprint’s technology and manufacturing strength, will enhance our mutual capabilities as we look to expand our customer value proposition and customer bases.”
Keane continued, “People & Print Group has built a model that focuses primarily on small businesses, but through a higher-touch approach that addresses customers with more sophisticated marketing and design needs. The small business market is large and fragmented. Different customer segments have varied needs, and we view the addition of People & Print Group to our portfolio of companies as a way for Vistaprint to enhance its ability to serve customers outside of Vistaprint’s target customers. We are committed to growing People & Print Group’s unique customer value proposition, brand, and high levels of customer service.”
Marco Aarnink, People & Print Group’s chief executive officer added, “We believe that our broad and deep product line and expertise will complement Vistaprint’s current offerings. As a company that continues to focus on its customer experience and relationships, we are excited about the opportunities ahead of us. This combination should enable us to even better serve a growing group of satisfied customers, as we believe Vistaprint’s scale, financial strength, technology and manufacturing expertise will help People & Print Group take our offering to the next level.”
Subject to satisfaction of various closing conditions, Vistaprint expects the transaction to close during its fourth fiscal quarter of 2014. People & Print Group management and employees will join the Vistaprint team, but will continue to operate under the People & Print Group brands.
Vistaprint expects this transaction to be immaterial to our fiscal 2014 financial results. Vistaprint will provide updated detailed guidance and longer-term commentary after the close of the transaction.
Vistaprint was advised on this transaction by Shan Finance (banking advisor), Stibbe (legal advisor) and KPMG Advisory N.V. (finance advisor). People & Print Group was advised by One Equity Advisors (banking advisor) and Lexence (legal advisor).