Ernst Beck Acquires Pausa During Tough Times for Printers
May 15, 2001
Como, Italy – Ernst-Joachim Beck, president of the German printer Ernst Beck said at Proposte that he has signed a letter of intent to acquire another German printer, Pausa. Pausa declared bankruptcy in late January and announced in March that it would terminate all 175 of its employees. In the last 10 years, Pausa's turnover reportedly dropped from about $21 million $14 million. It also reduced its workforce during that period from 250 to 175.
Beck will take ownership of both companies, but Ernst Beck and Pausa will remain separate in all aspects, including their respective production, distribution and development operations. By the time the new Pausa begins on 1 September, however, its buying and accounting operations will be consolidated in one department. Werner Luz, who will serve as general manager of Pausa when it resumes, will manage the accounting department. Under Beck's ownership, Pausa will employ 80 to 100 people, all of whom are currently Pausa employees.
Beck said the company will keep intact its flat-printing on both wide and narrow widths. Meanwhile Ernst Beck's ranges will include burnouts as its core offering. Ernst Beck is strong in retailing and wholesaling; Pausa is strong with editors, Beck said.
My company prints rotary wide widths (140 centimeters) and narrow widths (3 meters). Both companies have turnover of about DM30 million, Beck said. Pausa exports approximately 20 percent of its production, Ernst Beck about 35 percent. Both produce about three million square meters a year at middle to high price points: narrow width fabrics run $10 a meter and wide widths are $15-20.
To weather fierce competition in the prints sector of the industry, Ernst Beck began moving away from lower price points and changed its production focus. (Thus the emergence of burnouts as a primary product offering.) The company adapted to the changing market and posted a 1.7 percent increase in turnover in 2000 and a 1 percent increase in 1999. With printers dropping off the radar at a quick clip, Beck seized the opportunity to increase his market share.
"It's a hard business at the moment," he said. "Our company has changed completely. We had a big business, double the production. In 1990, we had 3 percent burnouts; now we have 90 percent. The quantity is going down and the quality is going up. We lost a lot of the quantity business, but now we're continuing and volume is going up.
"This is a time when you need to make decisions," Beck said.
Beck will take ownership of both companies, but Ernst Beck and Pausa will remain separate in all aspects, including their respective production, distribution and development operations. By the time the new Pausa begins on 1 September, however, its buying and accounting operations will be consolidated in one department. Werner Luz, who will serve as general manager of Pausa when it resumes, will manage the accounting department. Under Beck's ownership, Pausa will employ 80 to 100 people, all of whom are currently Pausa employees.
Beck said the company will keep intact its flat-printing on both wide and narrow widths. Meanwhile Ernst Beck's ranges will include burnouts as its core offering. Ernst Beck is strong in retailing and wholesaling; Pausa is strong with editors, Beck said.
My company prints rotary wide widths (140 centimeters) and narrow widths (3 meters). Both companies have turnover of about DM30 million, Beck said. Pausa exports approximately 20 percent of its production, Ernst Beck about 35 percent. Both produce about three million square meters a year at middle to high price points: narrow width fabrics run $10 a meter and wide widths are $15-20.
To weather fierce competition in the prints sector of the industry, Ernst Beck began moving away from lower price points and changed its production focus. (Thus the emergence of burnouts as a primary product offering.) The company adapted to the changing market and posted a 1.7 percent increase in turnover in 2000 and a 1 percent increase in 1999. With printers dropping off the radar at a quick clip, Beck seized the opportunity to increase his market share.
"It's a hard business at the moment," he said. "Our company has changed completely. We had a big business, double the production. In 1990, we had 3 percent burnouts; now we have 90 percent. The quantity is going down and the quality is going up. We lost a lot of the quantity business, but now we're continuing and volume is going up.
"This is a time when you need to make decisions," Beck said.