Breaking News: Agfa Photo's Assets Purchased

[bmattock]

http://www.sharecast.com/cgi-bin/sharecast/story.cgi?story_id=563857

Photo-Me snaps up bankrupt Agfa assets
Mon 31 Oct 2005

LONDON (SHARECAST) - Photo-Me International, the photo booth and digital imaging company, has snapped up assets from the administrators of bankrupt AgfaPhoto.

The mid-cap group is paying £6.1m for Agfa Photo’s Munich-based Wholesale Lab Division, which manufactures high-volume photo-finishing laboratories.

The agreement comes after Photo-Me failed to agree a takeover of the business earlier in the month, thought to be because its financial terms were reduced from previous guidance.

Agfa Photo filed for insolvency earlier this year after it was unable to pay its employees' salaries, just six months after the company was sold to management and a group of financial investors for €112m.

Photo-Me is paying 6.1 million pounds UK for what was valued at 210 million pounds UK in May of this year. Somebody got spanked.

Agfa Photo consisted of three main industries:

Consumer Products: film and single-use cameras.

Finishing: color and black & white papers and chemicals

Lab equipment: minilabs and wholesale lab equipment.

I am not sure what Photo-Me is purchasing for their 6.1 million. Not the film business, I guess.

I'm sure there will be more news in the hours and days to come. Stand by, this may be interesting.

Best Regards,

Bill Mattocks

 

[zuikologist]

The price might look good, but it depends on the liabilities that came with the Agfa business. Photo-me is a reasonably large business but I doubt they could sustain signficant losses from Agfa for long.

 

[bmattock]

The price might look good, but it depends on the liabilities that came with the Agfa business. Photo-me is a reasonably large business but I doubt they could sustain signficant losses from Agfa for long.

I suspect that they purchased the best cut of meat at the best price. When the liquidators moved in, the prices came down. Their job is to sell off as quickly as possible now. Losses no longer matter. That leaves the rest - and who knows if anyone wants it.

Man, this is weird stuff.

Best Regards,

Bill Mattocks

 

[doubs43]

I'm crossing my fingers that someone who can actually make the products will buy AGFA's film, paper and photo chemicals side of the business.

Walker

 

[bmattock]

I'm crossing my fingers that someone who can actually make the products will buy AGFA's film, paper and photo chemicals side of the business.

Walker

Agreed, that would be good.

Best Regards,

Bill Mattocks

 

[zeos 386sx]

"The mid-cap group is paying £6.1m for Agfa Photo’s Munich-based Wholesale Lab Division, which manufactures high-volume photo-finishing laboratories."

It doesn't sound like they are picking up film production - just equipment used to make "photo-finishing laboratories"

 

[taffer]

Agfa agony from a local pov.

http://www.quesabesde.com/noticias/Agfa-crisis-AgfaPhoto-Spain,1_2115

It's sad. When the SEAT workers are suspicious that their salary could be frozen or reduced, the whole country trembles and the government throws whatever money is needed.

Agh, the whole thing turns me mad but it's the world itself that it's going mainstream.

Wise Groucho's words come to mind... 🙁

 

[bmattock]

"The mid-cap group is paying £6.1m for Agfa Photo’s Munich-based Wholesale Lab Division, which manufactures high-volume photo-finishing laboratories."

It doesn't sound like they are picking up film production - just equipment used to make "photo-finishing laboratories"

Yes, I agree. That leaves the film and chemicals still to be purchased. Hopefully.

 

[airds]

That deal was supposedly all off last week - something about Photo-Me's obligations and liability to the existing employees.

 

[Gabriel M.A.]

These breaking news, will they be fixed soon?! 😉

I'm still going to buy three or five more litres of Rodinal, just in case...

 

[bmattock]

That deal was supposedly all off last week - something about Photo-Me's obligations and liability to the existing employees.

That was before Agfa gave up trying to sell itself. Now it is being liquidated, and that's that. They can't say no - they don't exist to say no. The receivers are selling off the chunks to whomever wants them and has some cash.

Best Regards,

Bill Mattocks

 

[zeos 386sx]

I just copied this from the Agfa USA website. It doesn't sound like there were separate divisions to split up. Unless Photo-Me has some interest in producing film products, or can sell that aspect of the business to some who is, then Agfa film products are no more.

"On 1 November 2004 the new AgfaPhoto group with headquarters in Leverkusen took over all the activities of the former Consumer Imaging division of the Agfa-Gevaert group.

Products for end consumers - such as film in particular - will continue to play an important role at AgfaPhoto, but the main emphasis of activities will be on development, production and marketing of laboratory equipment, software and consumer materials (in particular photographic papers and chemicals) for professional processing and finishing of photographic images. This means that AgfaPhoto will focus primarily on trade and photo finishing business customers."