Prinovis in Bertelsmann's €1.2bn Arvato print spin off

Prinovis Group, which is currently a subsidiary of Bertelsmann's global BPO business Arvato, will be grouped with Arvato's international print businesses in Italy, Spain and America, and spun off into a new print division.

The print division will comprise all of Bertelsmann's gravure print operations and all of its web offset print operations outside Germany. Bertelsmann's German web offset businesses, GGP and Mohn Media, will remain within Arvato "because they dovetail very closely with Arvato's services businesses".

Bertelsmann declined to comment on the profitability of the new €1.2bn division or whether it would continue to invest in the spun off print operations, and rejected suggestions that the move was the prelude to an exit from gravure printing.

"The strategy of the new unit will be defined by the new management," a spokesman said. "The rationale for the transaction was to focus Arvato, not to start a divestment process for the printing business."

The restructure, which was jointly developed by Bertelsmann and Arvato chief executives Thomas Rabe and Rolf Buch respectively, will be implemented during the first half of the year, after which it will be decided who will manage the new printing unit.

The shareholding structure of Prinovis and Arvato's international printing plants remains unchanged. Bertelsmann and Arvato were unavailable for further comment at the time of writing.