The soap opera surrounding Landa Digital Printing enters a decisive phase. Two weeks after laying off more than 100 employees, the Israeli company the developer of nanographic printing, has applied for a stay of legal proceedings to give itself a 14-day reprieve in order to "complete ongoing negotiations with strategic partnersâeuros¯" according to a press release from the company founded by Benny Landa. This decision comes after a "cash flow crisis".
Landa reports a 30âeuro¯% increase in machine installations over the last twelve months, particularly for customers already equipped with nanographic presses.
"Despite the company's significant achievements, the time needed to fully realize its commercial potential is longer than expected. The geopolitical situation, resulting from the prolonged war in Israel and regional instability, as well as commercial reasons have complicated the company's life."
According to the Israeli economic newspaper Calcalist, Landa was already racking up abysmal losses in 2022 and 2023: 264 million euros for cumulative sales of 70 million euros over these two years.
The situation deteriorated rapidly after the last edition of Drupa, where 50 purchase intentions were collected. The company reportedly placed orders for spare parts, but only 11 presses were actually sold. The result: a dormant stock valued at 170 million shekels (43 million euros).
As a result, Landa Digital Printing's accumulated debt would amount to 1.74 billion shekels (around 450 million euros), nearly 82% of which is owed to its own shareholders in the form of equity or convertible loans. The remainder is owed to suppliers, employees and the bank Mizrahi Tefahot.
Shareholders reportedly released a final envelope of 13.2 million dollars (11 million ueors) in June, before halting all financial support. An internal analysis projected a return to breakeven only in 2030, at the cost of a further $300 million (255 million euros).
While Landa's press release remains vague on the ongoing negotiations with strategic partners", Calcalist reports that the Board of Directors, in conjunction with Deloitte and the investment bank Nomura, has opened a data room to accelerate a sale, probably in the region of $100 to $200 million (?85 to ?170 million) - a far cry from paying off creditors in full.
And Landa is said to have attracted many manufacturers: HP, which in 2002 had already acquired Indigo, a company also founded by Benny Landa, for $850 million, is said to be the main candidate for the takeover, alongside other international groups such as Canon, Xerox, Agfa, Fujifilm, Epson, Brother and Koenig & Bauer.
In parallel with this application for a judicial freeze, Landa is continuing its reorganization and "continues to pay particular attention to the success of its customers, whom it will continue to serve fully and uninterruptedly".
