Germany-based press manufacturer Koenig & Bauer group (KBA) has signed a letter of intent with Italy's Officine Meccaniche G. Cerutti (OMGC) to acquire its Spanish subsidiary Iberica.
With around 60 employees, Iberica manufactures medium and large-format flatbed die-cutters for board and corrugated packaging.
Once completed, the deal is expected to enhance Iberica's growth and help KBA expand its presence in the packaging market.
Part of the folding carton printing market, KBA serves international customers in the sheetfed offset press and die-cutter sectors.
Koenig & Bauer president and CEO Claus Bolza-Schünemann said: "The KBA Group delivers 70% of its presses to companies in the growing packaging market.
"Sheetfed offset presses from KBA-Sheetfed have an outstanding position worldwide for folding carton printers. With this in mind, adding flatbed die-cutters to our portfolio for the same customer group makes perfect sense.
"The takeover and further development of Iberica through KBA corresponds to the strategic interests of both companies and we are confident that we will soon come to an agreement with the Cerutti Group given our longstanding solid company relationship."
Established in 1817, the company manufactures press products, advertising material, packaging and other products.
OMGC chairman and CEO Dr Giancarlo Cerutti said: "In accordance with the programmes of our group we have decided to accept the proposal of KBA for the purchasing of 100% Iberica and consequently we have signed a letter of intent.
"Iberica, which is operating in the 'sheetfed' packaging world, is no longer strategic for the current product portfolio of Cerutti Group that is more and more focused on 'web' packaging equipment.
"We enjoy with KBA old and consolidated relationship that are based on mutual esteem and cooperation. I'm sure that Iberica will benefit of further possibilities of growth and development in KBA."