Samsung Electronics’ board has today – September 12 – approved the sale of its Printing Business Unit to HP Inc aster a meeting in Seoul, South Korea. The board has also called an Extraordinary General Meeting of Shareholders in October this year to approve the sale of the business to HP.
“Samsung Electronics has reached an agreement to sell the entire global operations and assets of its printing business to HP. This transaction is part of the Company’s efforts to concentrate on its core business areas. Samsung will spin off the Printing Business Unit into a separate company as of November 1, 2016 upon the approval of shareholders, and sell a 100 percent stake of the newly created company and overseas assets related to the business to HP,” stated Samsung a media release.
Under the agreement, Samsung will source printers from HP and continue to market in Korea under the Samsung brand. The transaction is expected to close within one year, subject to the appropriate regulatory approvals.
The printing business, with 6,000 employees, a production base in China as well as more than 50 sales offices globally, posted 2 trillion Korean won (US $ 1.8 billion) in revenue in 2015.
Samsung’s Printing Unit has been struggling to grow marketshare against its other competitors. According to IDC’s 2016 first quarter statistics, Samsung was ranked fifth against its rivals, after shipping just over 1 million units, which accounted for 4.4 per cent of the global marketshare while HP was the market leader, moving about 8.4 million printers and controlling 36.3 per cent of the market.
Canon was ranked second after shipping 4.5 million units and an overall marketshare of 19.5 per cent with Epson coming in third with 4 million printers shipped and controlling 17.3 per cent of the overall market. Brother was fourth with 1.8 units shipped accounting for 7.7 per cent of the overall market.