Package Design | packagedesignmag.com

(November 2007) posted on Mon Sep 21, 2009

By Ron Romanik

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Before two became one, Esko was the leading global system integrator to the packaging preproduction industry, and Artwork Systems was a leader in integrated software solutions for prepress. The EskoArtwork merger announced this summer intends to consolidate the market leadership of both companies in packaging and printing preproduction products and services.

The physical integration of the companies will include moving the Artwork Systems personnel from their Ghent, Belgium, office into Esko's headquarters, which is only three miles away in Ghent. The strategic rationale for the transaction stems from a desire to better utilize each company's complementary strengths, expert sales and support channels, and global customer bases in the packaging and commercial printing market segments. The foreseeable future will include gradual integration of the company's internal structure and gradual integration of the company's products and services.

Familiar faces remain

However, there is a new EskoArtwork logo, and new job titles have been handed out. Carsten Knudsen, formerly CEO of Esko-Graphics A/S, is now CEO of EskoArtwork, and Guido Van der Schueren, formerly chairman of the board of directors of Artwork Systems Group NV, is now the chief commercial officer of EskoArtwork. Knudsen and Van der Schueren now form the Executive Management Board, and both serve as executive directors on the Supervisory Board of EskoArtwork.

"From a cultural perspective, we do not see too many challenges in integrating the business," says Knudsen, noting that the two companies were certainly not strangers to one another before. Van der Schueren agrees that the integration will be largely amenable, noting: "In more than 70% of Artwork Systems' customer base, there was no overlap with Esko." One reason the three founders of Artwork Systems favored the merger is that they believed joining forces with Esko would provide the optimal basis for securing future growth and development of Artwork Systems products.

Another reason for the merger is to offer one-stop solutions for end-to-end product development, package design, asset management, and production efficiency. "We are completing these product offerings to our customers," says Knudsen, "enabling them to take control of the entire process." Knudsen believes that both companies were already on the same page in terms of the high value they place on customer service and how they listen to customers' needs. Knudsen says there are no immediate plans for new products or services associated with the merger, aside from the streamlining of their business and sales processes.