Three of Europe’s leading label manufacturers – RAKO, X-label and Baumgarten – have announced that they have signed a merger agreement. The three pirvately-owned companies will be able to offer a wider product portfolio, more efficient processes and innovative solutions to its customers on a global scale.

The merger brings together three regional leaders in the labeling sector: RAKO Group and X-label Group from Germany and Baumgarten Group, a leader in the Brazilian label market. The newly established entity, which stretches around the world from Latin America through Europe to Asia, is built upon the proven track records and extensive experience of all three merging parties, who already own strong positions within and beyond their home markets. Together, the newly formed group operates 30 production sites across the globe, with more than 3,000 employees and over 2,000 customers from a wide range of market sectors and industries. The groups annual turnover is in excess of $500 million. These remarkable numbers in combination with a strong financial backbone through the involvement of Dr. Andreas Jacobs and his teamfrom Genui, will ensure organic and acquisitive growth for the upcoming years. 

Adrian Tippenhauer, managing shareholder of RAKO, Jan Oberbeck, managing shareholder of X-label, and Fernando Baumgarten, managing director of Baumgarten, jointly comment: “For all of us, this is an important and consequent step to achieve the next level for us and our customers, continuing the process of internationalization and strengthening our market position, globally and locally. Moreover, we will become the new haven for like-minded, innovative entrepreneurs, who want to join a privately owned and managed group, as only strong local partners will lead to great success.”

The transaction includes a succession for the Baumgarten family as they hand over the reigns of the group to the new headquarters in Europe. “I am personally happy that the future of Baumgarten, with more than 130 years of history, lies within building one of the largest label converters in the world. The partnership is based on trust and the strong believe to create something greater together,” says Ronaldo Baumgarten Jr.

Together, the entity will have 18 label manufacturing sites in Germany, three in China, two in France, and one in each of the following countries: Argentina, Mexico, Romania, Switzerland, South Africa, Brazil and Russia. 

The global leadership team of the new company will consist of the executives that have led their companies to their great market positions to date, including Matthias Kurtz and Adrian Tippenhauer of RAKO, Tim Fiedler and Jan Oberbeck of X-label and Fernando Gabel of Baumgarten.

The Headquarters of the new group will be located in Witzhave near Hamburg, Germany. Matthias Kurtz (Supply Chain), Adrian Tippenhauer (Sales & Business Development), Tim Fiedler (Finance) and Jan Oberbeck (Sales & Business Development) will serve as Co-CEO´s of the new founded group.

The merger is under review by German Cartel Office and closing of the transaction is to be expected later this year. Full integration of all companies is currently in the planning stage between all merging parties, and the full roll-out will last through 2017. All companies will operate within their legal structures until further notice.

The name of the newly established entity will be announced shortly after closing of the transaction.

In 2012, L&NW editor Steve Katz paid a visit to one of X-Label’s facilities in Germany, as the company was the subject of a Narrow Web Profile in the April 2012 issue of L&NW. 

The three merging companies have set up a special website devoted to the merger, at http://openingthenextchapter.com/