Press Release: Agfa-Gevaert on the insolvency filing of AgfaPhoto GmbH

Agfa-Gevaert announced today that it was informed of the insolvency filing by AgfaPhoto GmbH. Agfa-Gevaert is fully prepared to co-operate with the insolvency receiver once appointed and all parties concerned.

Effective November 2, 2004, Agfa-Gevaert sold its consumer imaging business to a group of investors in a management buy out/in. Since then the consumer imaging business has been operated through a group of companies under the name of AgfaPhoto. The AgfaPhoto group is a private group of companies owned by management, NannO Beteiligungsholding and a small number of financial investors.

Agfa-Gevaert provides AgfaPhoto group companies with distribution, order fulfillment, after sales and other services until the end of 2005.

In addition, at the time of the management buy out/in on November 2, 2004, Agfa-Gevaert granted a secured vendor loan for the full purchase price. Based on Agfa Gevaert's audited financial statement, the purchase price was set at 112 million Euros, which is still subject to an audit of the closing financials by the purchaser. The vendor loan is fully secured by a lease portfolio held by AgfaPhoto Holding GmbH, the parent company of the AgfaPhoto group. AgfaPhoto Holding GmbH is not implicated in the insolvency filing of AgfaPhoto GmbH. Agfa-Gevaert therefore does not expect the insolvency filing by AgfaPhoto to have a material effect on Agfa-Gevaert.

Agfa-Gevaert regrets this development for AgfaPhoto GmbH but is hopeful, that in the interest of preserving the employment and the business operations of AgfaPhoto group, the current difficulties can be overcome and that AgfaPhoto GmbH recovers quickly.

Nancy Glynn
Vice-President Communication
tel.: +32 (0)3 444 80 00
fax: +32 (0)3 444 74 85

Read Official Agfa Photo Announcement (German)


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.

The holding company NannO in Munich owns 55 per cent of the AgfaPhoto shares, 25 per cent are owned by eight members of the top management of AgfaPhoto, and the private equity companies Highfields Capital and Abrams Capital, both in Boston, own 10 per cent each. Eddy Rottie, former Director of Consumer Imaging at Agfa-Gevaert, is Executive Board Chairman and CEO. The declared aim is to further develop AgfaPhoto as a profitable company and one of the world leaders in the sector, while the company will remain open to extending its present portfolio.

Posted: Fri - May 27, 2005 at 05:27 PM