Lastra is a perfect fit for Agfa, said Graphic Systems general manager Albert Follens. The strategy is to keep the Lastra Groups brands and its dealer network in place. In addition this acquisition will strengthen our cost leadership in printing plates generating revenue and cost synergies.

Last year Lastra, which is the worlds fourth largest plate supplier, had revenues of 163m (240m). It has six factories in Italy and the US and employs 900 staff. Lastra bought Western Lithotech from Mitsubishi Chemical in 2002, gaining additional plate lines in the US as well as intellectual property for making visible photopolymer and thermal CTP plates.

The value of the deal wasnt disclosed. Agfa expected that legal and regulatory issues would mean the deal wont be completed until the autumn.

Agfa UK director Graphic Systems Laurence Roberts said he didnt see the deal making that much difference in the UK, where Lastra has a small presence.

We need to make sure were one of the two dominant players in 10 years time, said Roberts.

The firm is expected to make further acquisitions this year, possibly before Drupa. It has already returned to digital print, buying Dotrix in January and some sources suggest that its next acquisition may be software or workflow.

Roberts said that the firms Horizon and, more recently, Orion cost-saving drives had enabled it to build up cash for acquisitions.

Agfa increased net profit 67% to 220m in 2003 despite sales falling 10% to 2.9bn.

Its Graphic Systems divisions sales fell by 10.5% to 1.1bn, but excluding exchange rate variations the fall was 3.5%. This was attributed to lower sales and prices as well as currency effects.

Story by Barney Cox