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Listing ID: 2610410

Traditional Brazilian Company On Sales, Representation, Maintenance, Manufacture And Leasing Of Equipment For The Printing Industry For Sale

Rio de Janeiro, Rio de Janeiro, Brazil

$ 3,600,000

Revenue: $ 2,000,000

Cash Flow: $ 500k to 1m

Business Description

Graphimport is a traditional Brazilian company operating in the area of sales, representation, manufacture, maintenance and leasing of equipment for the printing industry. It also operates machinery retrofitting and preventive maintenance. It keeps a strong network of relationships with companies and governmental organizations of the industry.

It began its activities over 40 years ago (1976) manufacturing equipment for the preparation of plates and other equipment for photolithography and selling typography equipment and components, such as those of Benedini, Ricall and Graphimpex.

From the 1970s to the 1990s it represented, imported and sold products in large quantities such as those of the Roland brand, which later installed factories in Brazil, Mergenthaler, Linotipo do Brasil, Grafimpex, FP Rosback, Vacuumatic, paper counting machinery,

Around the same time, based on the network of relationships developed, the company opted to start operating in maintenance and leasing contracts with various government bodies and such contracts continue to this day.

Seeking to maintain growth and work in specific areas, Graphimport has formed two new companies: Pressigraf and Geralprint. It also started to participate directly in the main international business fairs of the area, such as DRUPA, IPEX, NEXPO, PRINT, FIEPAG, EXPOPRINT, EXPOPRINT DIGITAL.

Participation in fairs abroad facilitated contact with new partners, such as MB Bauerle, Swedish Plockmatic, French JBI and others.

These activities involved the representation, import, manufacture, remodeling, and maintenance of equipment, including, but not limited to sheet bending machines, saddle stitchers, punchers in binders, offset printers, matrices for the typographic area, finishing equipment, vibrating tables and dust spreaders, book hangers, paper driers, presses for notebooks, reticules and matrices.

In the 2000s the company set out to manufacture stitching machines for signatures and magazines, having had great success in the sales of such equipment and set up a team of technicians for the accomplishment of maintenance.

From 2011 onwards a series of factors led the company to face problems such as those arising from the entry of Chinese products with extremely low prices (even if of dubious quality) competing with the products of traditional suppliers. The company’s revenues were significantly reduced and indebtedness grew (see details in the full text).

Also due to these factors, the historical billing relation, of 60% of sales and 40% of maintenance contracts, was changed and today the services account for most of the revenues.

At this time there was also interest in the purchase of the company on the part of international groups, such as Ferrostaal and Heidelberg Brazil due to the extensive network of relationships developed by Graphimport. However, these negotiations were not successful due to internal problems in these groups, as well as the Brazilian crisis.

The increase in the company’s indebtedness made it difficult for the majority partner to carry out his withdrawal and to make the natural succession. Its intent is due to his advanced age.

The goal now is to seek the participation of foreign partners with strong currency who can invest and develop the potential that the company has, especially because of its contacts with companies and governmental organizations and its extensive network of relationships in the domestic and international graphic industry.

The company data showing that its main assets are the maintenance and lease contracts are presented in the detailed text(on request).

Property Details

Years Established:

41 years

Other Details

Business Location:

Industrial sector close to suppliers and street commerce.

Premise Details:

BRIEF HISTORY Graphimport is a traditional Brazilian company operating in the area of sales, representation, manufacture, maintenance and leasing of equipment for the graphic industry. It also operates machinery retrofitting and preventive maintenance. It began its activities over 40 years ago manufacturing equipment for plate preparation, assembly and retouching tables and other equipment for photolithography and selling equipment and components for domestic manufacture typography, especially such as vibrating tables and dust spreaders (from A Benedini), book hangers, paper driers and book presses (Ricall) and reticules and matrices (Graphimpex). Still in the 1970s it represented Dinama, an importer of blankets, selling the product in great quantity until the domestic manufacture of this component. At that time, a Roland (Germany) factory was set up in São Paulo, producing small offset printers and which Graphimport began representing in Rio de Janeiro, having sold over 50 machines. In the 1980s, the company joined Linotipo do Brasil, representative of the Mergenthaler brand in Brazil, and from then on the sale of and matrices for the typographic area was developed in partnership with the Grafimpex company. From the 1990s the company decided to seek partners abroad who were looking for a representative in Brazil. This change of course began with a partnership with FP Rosback, the American finishing equipment manufacturing company, from which over 50 equipment were sold in 5 years. Then an agreement was signed with the Vacuumatic company, a manufacturer of paper counting machines of English origin, which remains to this day with great success. Around the same time, due to the good relations with the entities of the printing area in Brazil and abroad, the company opted to move into a new area: maintenance and leasing contracts with various governmental bodies, contracts that last until today and which represent an important part of our revenues. Seeking to maintain growth and work in specific areas, Graphimport has formed two new companies to be part of the group: Pressigraf and Geralprint. It also participated directly in the main international trade fairs in the area, such as DRUPA (the largest graphic trade fair in the world where it had representatives from 1990 to 2012), as well as IPEX (England) and NEXPO and PRINT (both in the United States). Participation in fairs abroad facilitated contact with new partners and allowed the company to represent new equipment in Brazil, such as sheet bending machines (manufactured by MB Bauerle, from Germany), fasteners and saddles (from Plockmatic, Swedish) and drills in binders (from the French JBI), as well as several other representations that are no longer active. Also around that time Graphimport started to participate, with its own stand, in the main fairs of the printing industry area in Brazil, aiming to demonstrate the products of its representations. It was present in all the last editions of the FIEPAG, EXPOPRINT and EXPOPRINT DIGITAL fairs. In the mid-2000s the company started a new venture: the manufacture of stitching machines for signatures and magazines (sold under the PRIME brand), having set up a line with manufacturing and maintenance technicians. Over 60 equipment were sold in about 4 years. The product lost competitiveness due to the entrance of similar equipment manufactured in China that, with the favorable exchange rate, were sold at values that made it impracticable to keep the domestic production. As of 2011 a number of factors led to the company’s revenues to fall compared to previous years: - Entry of Chinese products with extremely low prices (even if of dubious quality) competing with the products of traditional suppliers (such as the ones we represent). - Unfavorable exchange rate and with great oscillations, which led the buyer of equipment to review and postpone their investments. - The great "boom" of the Internet facilitating the access of eventual buyers to second-hand products, including abroad. - Due to the cuts in personnel in the large companies in the area, there was the appearance of a number of companies representing equipment and service providers, all of them being direct competitors of Graphimport’s activities. Due to these factors and mainly due to the economic crisis that began in 2015, the company’s revenues went from 6 to 7 million dollars annually to around 3 million dollars a year and, with that, our indebtedness grew and today is about 30% of the annual revenues. Also due to these factors, the historical revenues relation it had, of 60% of sales and 40% of maintenance contracts, was modified and today the services account for the majority of the revenues. Already around that time the goal was the withdraw of the majority shareholder, who was 70 years old and wanted to leave the company and admit international partners. In 2012 the Ferrostaal group (from Germany) was interested in buying it, given their interest in having access to contracts with the Government, but during the 2012 Drupa it gave up the business due to internal changes in the group. Sometime later Heidelberg Brazil also showed interest but gave up the idea due to changes in the group and also due to the Brazilian crisis. Due to the crisis and the increase in indebtedness there was no opportunity to make the succession. The aim now is to seek the participation of foreign partners with strong currency and who can invest and develop the potential that the company has, especially because of its contacts with the Government. Below you will see the company’s data showing that its main assets is the maintenance and lease contracts, some of which have been in force for over 04 years. In addition to that, the company has in stock graphic equipment, parts, paper, machine tools and others with estimated values of around USD 300,000.00. The company believes it can revive this existing potential by investing in the network of relationships we have in the graphic area, especially with companies and governmental organizations. THE COMPANY In October 2016, GRAPHIMPORT completed 40 years of work in the graphic market. It is a limited liability company, having as quota holders: Nilson de Almeida (52% of the quotas): Engineer, with extensive experience in the graphic industry, where he has been working since 1968. Gustavo Lezan de Almeida (48% of the quotas): Graduated in international relations, in the company since 1995. The company is currently selling graphic equipment and providing technical assistance, maintenance and leasing services. It has a strong presence in government and private companies in both business areas. In addition to GRAPHIMPORT, the following companies are part of the Group: PRESSIGRAF, founded in 1997, registered in SIMPLES and acting mainly in the supplies for public areas; GERALPRINT, founded in 1995, registered in SIMPLES and currently only billing services rendered with technical assistance. REPRESENTATIONS VACCUMATIC (England): Paper counting machine and inserts of which the main customers are companies that work with security forms, such as the Mint, Post Office, Bank of Brazil and also paper manufacturers. Exclusive representation. MATHIAS BAUERLE (Germany): Folding machines, of exclusive representation, with special emphasis on automation, folds of small formats (leaflets) and other special folds. PLOCKMATIC (Sweden): Produces tower cranes and finishing systems for the small and medium-sized digital market. Equipment of excellent quality and with an old base installed in Brazil. JAMES BURN INTERNATIONAL (France): Manufacturer of Wire O binding machines (binders and drills) for the medium/large segment. They are the Wire O brand “owners”. OTHERS: Contacts with several foreign suppliers of parts and pieces for pre-printing and rotary printing, as well as auxiliary equipment suppliers for rotary printing lines. CONTRACTS The companies of the GRAPHIMPORT group keep a series of contracts for the maintenance and lease of equipment with several public companies, according to the table on the next page. These contracts guarantee monthly revenues and are valid for a period of up to 60 months, depending on the renewals and the type of contract. In addition to the monthly revenues, these contracts generate an “inventory” of receivables for the future. Maintenance contracts (60 months) are renewable annual contracts, at the discretion of the contracting party, for up to 5 periods. Lease agreements stipulate a shorter term (usually 48 months) but are valid for a single period, guaranteeing the independent revenues of renewals.

Operation Details

Employees:

16

Trading Hours:

Mon-Fri from 8 am - 6 pm

Miscellaneous

Reason For Selling:

Major partner retirement

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