Friday, February 7, 2025

Print Everything Everywhere All at One Place – January 2025 M&A Activity


 
We are inundated with printed images. While the steady decline of newspapers and other forms of print gives a general societal impression that print is a dying industry, the truth is that we are surrounded by more print in more places on more things than ever before. The use of printed images in our environment has proliferated.

Enabled by continual development of digital print technologies, almost everything we use has images printed on it in one form or another. Just about anything we can imagine being printed, can be printed, and is. Online ordering systems drive evermore printed editions of one. (For more see: The Target Report: On-Demand Print & Merch is BIG Business for Private Equity – November 2024.) In our malls and shopping centers, entire retail environments are created, and recreated, again and again, in short time, with the use of printed graphics. Cultural venues, such as museums, are rich with graphic displays that keep up with the times and changing exhibitions. Tall buildings are wrapped and draped. Vehicles of every sort carry branding and messages.

Private Equity Investors Believe in Print

About ten years ago, one of the leading partners in a well-known PE firm that invests in the lower end of the middle market told me that they would not even consider an investment in a company that provided marketing-related commercial print services. Too risky. Old technology. Messaging is moving online. No potential for meaningful returns.

What a difference a decade makes. Print has evolved into a multi-faceted visual communication industry that eagerly applies graphics to almost every surface in any location, with incredible images, rendered in high fidelity, and in quick order. In January, that same PE firm, The Riverside Company, announced its investment in The Vomela Companies. The smart money has rediscovered print, or as it is now more accurately described: visual communications, or specialized graphic solutions, or visual solutions, and other such non-print monikers.

Visual Communications on the Move

The Vomela Companies, as a whole, represent an incredible range of printed graphic capabilities. The company’s slogan is “Big Ideas, Any Surface, Any Scale.” The company is now comprised of multiple divisions, with over 1,300 employees and more than 20 locations across North America.

Core to the company’s success over the past several decades has been its transportation group. The division prints and installs graphics on fleets of trucks, motorcoaches, trains, buses, delivery vans, and cars. Founded in St. Paul, Minnesota, in 1947, Vomela enjoyed a close relationship for many years with the 3M company, specifically working together in the development of techniques to print on pressure sensitive vinyl stocks and die cut unique shapes for custom decal applications. According to company history, the 3M company was the major customer of Vomela and dominated its manufacturing capacity for two decades up to the early 1980’s. That relationship led Vomela into the fleet business, for which it provided decals for truck fleet marking as well as specialized decals for the automotive and motorcoach markets as an OEM supplier.

In concert with 3M, Vomela’s dedication to develop durable custom decals for the automotive manufacturers gave many cars a unique style that was only achievable by the application of printed graphics. There were, of course, the usual racing stripes and big bold lettering, but some decals went much further, became iconic emblems, and defined a brand.

The original Firebird nameplate emblem was derived from a stylized image of a bird based on a Hopi Native American symbol. With its wings turned downward, head turned sideways, and its one eye apparently half closed, the logo became known inside GM as the “Sick Chicken.” Seeking to design a more uplifting positive image for Pontiac’s signature sporty car, Bill Porter, the Pontiac Studio Design Chief at the time, designed a new logo. He lifted the bird’s wings up into a victory pose. He positioned its head to be looking upward with flame shooting from its mouth. He took further design inspiration from the feathery pattern on a Tiffany vase in his private collection. The result was the addition of a surround of fiery lines sweeping up and around the bird.

With this new refreshing and energetic logo in hand, the design team applied a large test bird decal to the hood of a bright red Pontiac Firebird. They drove the newly decorated car up and down the strip in Detroit, stopping at local diners, drive-ins, gas stations, and hangouts. The reaction to the car from young folks convinced the design team to float the idea of adding the large graphic bird image to the car, a radical departure from the standards of the time. It took a couple years to convince Pontiac’s top management to allow the bird decal to be put on the hood of their cherished hot-selling sports car, but eventually they relented and in 1973 the graphic was offered as an option for an additional $55. The “Hood Bird” caught on and became a standard on the tricked-out models offered for sale, with the decal glued to the hood of every high-performance Special Edition, Anniversary and Pace Car model sold until 1981. No longer the sick forlorn downward-facing bird, the new printed firebird has ever since been affectionately known by car enthusiasts as the “Screaming Chicken.”

Diversity of Graphic Solutions

When 3M pulled its decal manufacturing inhouse in the early 1980’s, Vomela contracted, laying off a significant portion of its workforce. Getting back on its feet, the company began a four-decade journey, fueled by serial strategic acquisitions, to arrive at its current highly diversified position.

In addition to transportation graphics, the company is a powerhouse in retail wide-format printing applications. The company’s C2 division, with locations across the US and in BC, Canada, specializes in retail signage and on-demand digital printing. Markets are served with products including in-store displays, store décor, wayfinding graphics, and event & experiential marketing. The Pratt Visual Solutions division manufactures permanent retail displays and signage, among other retail decorations.

The company also has a commercial printing group built via a series of acquisitions. Former companies now under the Vomela commercial umbrella include the Master Print, Elk Graphics, and Tepel Brothers printing companies. While Vomela remains largely a wide and grand format printing organization, this regional diverse group of commercial printing facilities provides collateral and direct mail support for its national enterprise-level customer base.

From its initial start as a small company founded by Jack Vomela that began by decorating Christmas gift tags with glitter and flocking, in 2024 the company reported revenue of $364 million. While it may not print on everything, everywhere, all in one place, the company surely is part of the trend to apply graphics in ever new and diverse ways.
   
2025 January - Mergers and Acquisitions in the Printing, Packaging, Paper & Related Industries

Deal Party #1
(Surviving Entity)
Pre-Deal
Revenue
(US$Mil)


Party #1 Address


Deal Party #2
Pre-Deal
Revenue
(US$Mil)


Party #2 Address
Date
Deal
Public
Deal
Value
(US$Mil)

Deal Structure
(Intermediary)


Notes
Link
Associated Printing Productions No Data Miami Lakes, FL All In One Mail Shop
dba All In One Marketing Solutions
No Data Miami, FL 1/31/25 No Data Acquisition Direct mail printing Link
Carpenter Media Group No Data Natchez, MS Enterprise Media Group
(10 Titles + 3 shoppers)
No Data Blair, NE 1/30/25 No Data Acquisition
(Dirks, Van Essen)
Community newspapers Link
Tactiv No Data Indianapolis, IN Concept Prints No Data Indianapolis, IN 1/28/25 No Data Acquisition Screen printing & embroidery Link
Minuteman Press, Clawson No Data Clawson, MI The Print Stop No Data Berkley, MI 1/24/25 No Data Acquisition Printing & copying Link
RoyerComm
(RoyerComm Prism)
No Data Pennsauken, NJ Prism Color No Data Moorestown, NJ 1/22/25 No Data Merger Commercial printing Link
Allcard Limited No Data Cambridge, ON Ampersand Printing No Data Guelph, ON 1/21/25 No Data Acquisition Commercial printing Link
Komori Chambon Group
(Sub. Komori)
No Data Orléans, France CPS Canadian Primoflex Systems No Data Cambridge, ON 1/20/25 No Data Acquisition Flexographic presses Link
Alliance Machine Systems Intl
(Div. Barry-Wehmiller)
No Data Spokane, WA JD Engineers No Data Joure,
The Netherlands
1/17/25 No Data Acquisition Folder gluer machinery Link
Wortman Printing No Data Effingham, IL Patton Printing No Data Effingham, IL 1/16/25 No Data Acquisition Commercial printing Link
Koozie Group
(Port co. H.I.G. Capital)
No Data Clearwater, FL Skinner & Kennedy No Data St. Louis, MO 1/14/25 No Data Acquisition Calendars & notepads Link
Jeff Harper No Data Detroit, MI Graphic Engravers
vdba GEI Graphics
No Data Bensenville, IL 1/10/25 No Data Acquisition
(Generational)
Flexographic printing plates Link
Brook + Whittle
(Port co. Genstar Capital)
No Data Guilford, CT Stouse $56.2 New Century, KS 1/9/25 No Data Acquisition Label printing & promo Link
Tidewater Direct $52.0 Centreville, MD The Notepad Store No Data Wallingford, CT 1/8/25 No Data Acquisition Notepads & promo Link
The Riverside Company No Data New York, NY Vomela $364.0 St. Paul, MN 1/7/25 No Data Acquisition
(Cascadia Capital)
Wide format & retail display Link
Vision Graphics
Port co. Banner Capital Mngt.
No Data Salt Lake City, UT Queen of Warps No Data Salt Lake City, UT 1/2/25 No Data Acquisition Wide format - Vehicle wraps Link
PromoCentric No Data Newmarket, NH Screen Gems No Data Seabrook, NH 1/2/25 No Data Acquisition Screen printing & embroidery Link
H.I.G. Capital No Data Miami, FL Best Version Media No Data Brookfield, WI 1/2/25 No Data Acquisition Community publications Link

   
2025 January - Bankruptcy Filings in the Printing, Packaging, Paper & Related Industries



Filing Party

Date
Case
Filed
Pre-Petition
Revenue
(US$Mil)



Case #



Filing Party Address



Circuit



Region & City



Judge



Attorney for Debtor



Notes
Chapter 11 Filings:
Image Direct Group LLC 1/15/25 No Data 25-10353 Frederick, MD 4th Maryland
Greenbelt
Lori S. Simpson Lawrence Heffner Direct mail printing 
Diamond Comic Distributors, Inc. 1/14/25 No Data 25-10308 Hunt Valley, MD 4th Maryland
Baltimore
David E. Rice Jordan Rosenfeld Comic book distribution
Chapter 7 Filings:
No Chapter 7 Filings Found this Month --- --- --- --- --- --- --- --- ---

 
2025 January - Non-Bankruptcy Closures in the Printing, Packaging, Paper & Related Industries



Closed Company / Facility

Date of Closure
Pre-Closure
Revenue
(US$Mil)



Closing Address
Related Party Related Party
Address
Date Closure Public


Notes

Press
Releases
Trumbull Printing 3/6/25 No Data Trumbull, CT None N/A Jan-25 Coldset web printing Link
Joliet Pattern Works
(Fiduciary Agent: Graphic Arts Advisors)
3/5/25 No Data Crest Hill, IL None N/A Jan-25 Retail display Link
Rainbow Graphics 2/28/25 No Data Mundelein, IL Qualfon Highland Park, MI Jan-25 Direct mail forms printing Link
Shout Out Loud 2/18/25 No Data Columbus, OH None N/A Jan-25 Screen printing  Link

Monday, January 6, 2025

Zig-Zagging – December 2024 M&A Activity


From Printing to Print Management to Business Process Outsourcing

Printing companies increasingly seek to diversify their service offerings via acquisitions of companies that support their customers’ communication needs outside of print. However, despite the increasing use of electronic media, print remains one of the critical channels in today’s messaging mix. Print-centric companies that proactively grow via an M&A strategy go back and forth, shifting directions, alternately completing transactions that bring in additional print volume, and then subsequently acquire a company with services that are adjacent to print, but not core to the mission of putting ink on paper.

RR Donnelley is Back in the Acquisition Game

In late December, RR Donnelley (RRD), now owned by Chatham Asset Management, announced its second big deal of 2024, the acquisition of Williams Lea. The deal is a classic example of “if you can’t beat ‘em, join ‘em,” or more correctly “buy ‘em.”

The acquired company, based in London, is one of a handful of firms that have successfully placed themselves firmly between printing companies and their large enterprise-level customers. As the intermediary between printer and customer, these firms purport to drive competition between print providers more effectively than can be achieved if the corporations leave print buying to their own internal staff.

The CEO of RRD noted that the acquisition of Williams Lea aligns the company’s strategy to build on their business support offerings to achieve their “vision of the Digital, Creative and Business Support Services segment.” The combination will enable their clients to “maximize their own customer engagement strategies and streamline their business operations.” No mention of acquired print volume.

For Williams Lea, the acquired company, the transaction is a full-circle return to its printing roots. German immigrant John Wertheimer came to London in 1820 with a letter of introduction to a member of the wealthy Rothschild family. Wertheimer used the resultant connections to start his printing business under the moniker Wertheimer & Co. Products produced were traditional printed items including books, stationery, and publications. With its German and Jewish roots, the company specialized in foreign language translation and printing, including Hebrew and German, a fact with subsequent impact on the company’s fortunes.

In 1864, the same year that Richard Robert Donnelley started his printing business in Chicago, John Edward Lea joined the London printing company, and the name was changed to Wertheimer Lea & Co. to reflect the new ownership. In 1884, a partnership was formed with John Henry Williams, a year after Wertheimer’s death. With the outbreak of the First World War, amid the anti-German sentiment in Britain, the Wertheimer name was dropped, and the firm’s name was changed to Williams Lea.

The company continued to grow, eventually housed in five separate manufacturing plants. In 1899, the company built its iconic six-story building in London on the corner of Clifton and Worship streets and consolidated its operations. At the time of construction, the building was considered state-of-the-art with electricity powering all the machines. That building still stands today, having survived the Blitz aerial bombing attack on London during the Second World War. As a specialist in foreign language printing, the company printed many of the propaganda leaflets dropped over Germany, as well as printed information that was distributed among the French underground resistance fighters.

As the London financial community blossomed during the last two decades of the twentieth century, the company launched an outsourcing business, initially focused on serving the City community (London’s Wall Street). That turned out to be a fortuitous decision and led to the transition of the company into its current form, primarily focused on serving financial, legal, and professional service firms.

In the year 2000, Williams Lea invented the disruptive print management model and landed a ground-breaking contract with AXA insurance, in which the company assumed all responsibility for the management of all AXA’s print production activities in the UK. According to their press release at the time, “this radical solution involved a substantial number of staff transfers” (from AXA’s payroll to Williams Lea’s). Reduction in the customer’s head count of non-core staff (e.g., print buyers, copy center operators) became a key selling point and led to other firms jumping on the print management bandwagon (e.g., Innerworkings, now part of HH Global). In this way, the Williams Lea strategy was more than just external cost reduction achieved through aggressive buying practices. As Williams Lea discovered, hiring a client’s print purchasing personnel enabled them to promise and deliver fully burdened cost reductions that most printers simply could not match.

Shortly thereafter, Williams Lea brought its outsourcing model to the US. As the owner of a commercial printing company at the time, I personally became aware of Williams Lea and its ability to insert itself into a formerly solid printer/customer relationship. A large regional eastern-US bank, which was then a significant customer of my printing company, told my business partner who managed the account that the bank would no longer be buying print directly. In what is now a familiar drill for many printing companies, we were introduced to a young analyst who worked for Williams Lea. We were told that to keep the bank’s print business, we needed to reduce our pricing by double-digits, commit to a punishing progressive rebate schedule, and submit to aggressive ongoing bidding and negotiations. Eventually, the demands were unsustainable, and we had to walk away from that formerly profitable customer. We had been intermediated.

With its print management and business process strategy fully developed, Williams Lea grew into a multi-national company with more than 8,000 employees across three continents. In 2006 the Williams family sold a controlling interest in the business to Deutsche Post, the German postal and logistics company. Deutsche Post envisioned synergies between its logistics and supply chain business and William Lea’s expertise in handling large volumes of sensitive documents.

Under Deutsche Post’s ownership, as mail volumes declined, a strategic plan was launched to move upstream in the value chain of document and marketing material production. To accomplish this, in 2011 Williams Lea acquired Tag Worldwide which provided creative, prepress and production services. Tag not only worked with advertising agencies, but it also competed with its clients in the creative sphere.

As it turned out, e-commerce volumes exploded, Deutsche Post reconsidered its strategy and decided that William Lea’s services fell outside its core operations. Consequently, in 2017 the business was sold to Advent International, the global private equity giant headquartered in Boston, Massachusetts. (For more see: The Target Report: Williams Lea Tag is on the Move – August 2017.)

Having been divested from Deutsche Post and now under Advent’s stewardship, Williams Lea completed its own divestiture and in 2023 sold Tag Worldwide to the Dentsu Group, the global advertising and public relations company based in Tokyo, Japan. This sale marked a strategic decision to separate the creative production arm, Tag, from Williams Lea’s core focus on document management and business process outsourcing services. Effectively, the sale of Tag was an about-face, a reversal of the upstream strategy, returning Williams Lea to its clear focus on the more pedestrian enterprise of business process outsourcing.

Back in the World of Print

This latest acquisition is in stark contrast to RRD’s purchase in March 2024 of the retail insert business (formerly Valassis) from Vericast. (For more see: The Target Report: Half a Loaf is Better than None – March 2024.) While the rhetoric surrounding RRD’s acquisition focused on the many forms of digital marketing included in the acquisition, the core of the acquired business was the newspaper advertising insert, coupon, and free-standing insert print business. The Zig to the Williams Lea Zag.
    
2024 December - Mergers and Acquisitions in the Printing, Packaging, Paper & Related Industries

Deal Party #1
(Surviving Entity)
Pre-Deal
Revenue
(US$Mil)


Party #1 Address


Deal Party #2
Pre-Deal
Revenue
(US$Mil)


Party #2 Address
Date
Deal
Public
Deal
Value
(US$Mil)

Deal Structure
(Intermediary)


Notes
Link
Walsworth $240.0 Marceline, MO Documation No Data Eau Claire, WI 12/23/24 No Data Acquisition Commercial printing Link
Xerox $6,370 Norwalk, CT Lexmark
(Sub. Ninestar Corp.)
No Data Lexington, KY 12/23/24 $1,500 Acquisition Printing devices & services Link
R.R. Donnelley
(Port co. Chatham Asset Management)
No Data Chicago, IL Williams Lea
(Port co. Advent International)
No Data London, UK 12/20/24 No Data Acquisition Business process outsourcing Link
Grimco No Data Fenton, MO Graphic Solutions Group No Data Dallas, TX 12/20/24 No Data Acquisition Graphic supplies distributor Link
Multi-Color Corporation
(Port co. Clayton, Dubilier & Rice)
$3,000 Rosemont, IL Eximpro No Data Los Reyes Acaquilpan, Mexico 12/19/24 No Data Acquisition Shrink sleeve labels Link
Porat Itay No Data Ramat Gan, Israel Advanced Vision Technology
(Div. Esko)
No Data Ghent, Belgium 12/19/24 No Data Acquisition Print inspection systems Link
Toppan Group $11,430 Tokyo, Japan TFP Business Unit
(Div. Sonoco Products Company)
$1,300 Hartsville, SC 12/18/24 $1,800 Acquisition Thermoform & Flex packaging Link
Total Printing Systems No Data Newton, IL Perfection Press No Data Logan, IA 12/11/24 No Data Acquisition Book manufacturing Link
Reflex Group $236.3 West Yorkshire, UK CB Printed Technology No Data Commerce, CA 12/9/24 No Data Acquisition Label printing Link
Carpenter Media Group No Data Natchez, MS M. Roberts Media No Data Longview, TX 12/6/24 No Data Acquisition
(Dirks, Van Essen)
Community newspapers Link
Allegra, Vaughan
(New franchisee)
No Data Vaughan, ON Allegra Vaughan No Data Vaughan, ON 12/6/24 No Data Acquisition Printing & copying Link
Peczuh Printing & Paperbox No Data Price, UT Perma Graphics /
Custom Plastic Laminating
No Data Salt Lake City, UT 12/3/24 No Data Acquisition Bindery & finishing services Link

   
2024 December - Bankruptcy Filings in the Printing, Packaging, Paper & Related Industries



Filing Party

Date
Case
Filed
Pre-Petition
Revenue
(US$Mil)



Case #



Filing Party Address



Circuit



Region & City



Judge



Attorney for Debtor



Notes
Chapter 11 Filings:
No Chapter 11 Filings Found this Month --- --- --- --- --- --- --- --- ---
Chapter 7 Filings:
Denbar Publishing, Inc.
(dba Senior News)
12/7/24 No Data 24-18287 Elgin, IL 7th Northern IL
Chicago
Janet S. Baer Stephen J. Costello Specialty newspaper publisher

   
2024 December - Non-Bankruptcy Closures in the Printing, Packaging, Paper & Related Industries



Closed Company / Facility

Date of Closure
Pre-Closure
Revenue
(US$Mil)



Closing Address
Related Party Related Party
Address
Date Closure Public


Notes

Press
Releases
Graphics Dec-24 No Data Calmar, IA None N/A 12/9/24 Newspaper printing Email
Notice