Wednesday, December 14, 2011

RR Donnelley Acquires PS Label Printer – November 2011 M&A Activity

November was a busy month for dealmakers in the printing industry, with seven transactions making it onto our deal log. It is especially noteworthy that one of the transactions was supported by a $5.5 million equity and mezzanine investment from the private equity fund, Boathouse Capital – could this be a sign that deal activity will be picking up in the industry, fueled by fresh capital from private equity sources?  

The deals listed this month truly illustrate how diverse the printing industry is, ranging from the acquisition by Graphic Systems Group of Eye2Eye Digital, a provider of retouching and wide format services, to industry heavyweight RR Donnelley’s acquisition of the Stratus Group, printer of pressure sensitive labels and packaging.

On the bankruptcy listings, we chose to include MAN Roland, the press manufacturer from Germany. Although technically not a bankruptcy since the filing was under German insolvency laws, it’s too important an event not to include and certainly indicative of the state of the market for new offset presses. It’s also notable that another paper manufacturer, SP Newsprint, filed for Chapter 11 protection in November, following New Page’s filing back in September.

2011 November - Mergers and Acquisitions in the Printing, Packaging, Paper & Related Industries
Deal Party #1
(Surviving Entity)
Pre-Deal Revenues ($Mil ) Party #1 Address Deal Party #2 Pre-Deal Revenues ($Mil ) Party #2 Address Date Deal Public Deal Value ($Mil) Deal Structure
Notes Press Releases
Graphic Systems Group No Data New York, NY Eye2Eye Digital No Data New York, NY 11/28/11 No Data Acquisition Retouching & Wide format Link
RR Donnelley $10,019 Chicago, IL StratusGroup No Data West Chester, OH 11/22/11 No Data Acquisition PS labels & packaging Link
United Graphics
(Sterling United)
No Data Buffalo, NY Sterling C. Sommer Creative Printing No Data Tonawonda, NY 11/21/11 No Data Merger $9Mil comb. rev, 40 employees Link
Yurchak Printing No Data Landisville, PA Odyssey Press No Data Gonic, NH 11/17/11 No Data Assets Acquisition
Acq of intangible assets & equip. Link
Quartier Printing
No Data East Syracuse, NY  Cayuga Press No Data Cortland, NY 11/15/11 No Data Not Disclosed
$10Mil comb. Revenue Link
(Colortree Group)
No Data Henrico, VA Graphic Innovations No Data Richmond, VA 11/3/11 No Data Not Disclosed
(Dominion Partners)
$5.5Mil mezz & equity from Boathouse Capital Link
IBS Direct $14.7 King of Prussia, PA Mars Graphics Services No Data Westville, NJ 11/1/11 No Data Acquisition Heatset & non-heatset web Link

2011 November - Bankruptcy Filings in the Printing, Packaging, Paper & Related Industries
Filing Party Date Case Filed Pre-Petition Revenues ($Mil ) Case # Filing Party Address Circuit Region & City Judge Attorney for Debtor Notes
Total Printing Services, Inc. (aka TPS) 11/29/11 No Data 11-70424 West Bloomfield, MI 6th Eastern MI
Phillip J. Shefferly Mark B. Berke Chapter 7
MAN Roland AG 11/18/11 No Data N/A Augsberg, Germany Augsberg, Germany N/A No Data Link
D&R Printing, Inc. 11/16/11 No Data 11-43167 Union, NJ 3rd New Jersey
Novalyn L. Winfield Nancy Issacson Commercial printer. 
SP Newsprint Holdings LLC 11/15/11 No Data 11-13649 Greenwich, CT 3rd Delaware Christopher S. Sontchi Mark D. Collins Newsprint Mills in GA & OR.
National Graphics, Inc. 11/7/11 No Data 11-36818 Brookfield, WI 7th Eastern WI
James E. Shapiro Leonard G. Leverson Lenticular printing.