Consolidation in all sectors of the printing industry continued unabated in February, with several deals enabled with the backing of private equity. As previously noted in The Target Report, private equity funds continue to find investment opportunities in the shrinking business of paper-based communications and the associated supporting industries. Only time will tell if these sophisticated investors get wounded, having caught the proverbial “falling knife,” or if they have made well-timed investments in an industry poised to stabilize and their funds provide reasonable returns to these believers in the future of print.
DG3, a global print services provider with roots in financial reporting, backed by Arsenal Capital Partners, acquired the print-related trade and assets of Sterling Financial Print. Sterling Financial Print, headquartered in London, is now part of DG3’s European print operations, while Sterling itself, having now shed its print production capabilities, focuses on financial information services including its proprietary virtual data room (VDR) offering.
Two significant players in the book manufacturing sector, Edwards Brothers and Malloy, have come together to form Edward Brothers Malloy. In a previous and related two part deal, announced in January 2011, Lion Equity Partners acquired Rockpoint Logistics from Kaplan, Inc., the subsidiary of The Washington Post Co., and then outsourced the operating management of Rockpoint Logistics’ printing operation to Edwards Brothers. Rockpoint Logistics offers print-on-demand, very short run printing and fulfillment services.
Archway, a marketing logistics and fulfillment company backed by two PE firms, Tailwind Capital and Black Canyon Capital, acquired Synq Solutions. Synq Solutions brings digital print and additional fulfillment capabilities to Archway. Both companies tout strong support services for companies with business models that require sophisticated multi-location marketing campaigns in retail environments, including automotive dealerships, quick service restaurants (QSR’s), food and beverage companies, and retail chains.
In the packaging space, Rohrer Corporation, backed by ShoreView Industries, acquired Hogue Printing Solutions, bringing manufacturing capacity in Arizona to this Ohio-based company. The roll-up strategy in the printing industry continues to evolve, as noted in the January Target Report. Nationwide Graphics, a veteran roll-up company, recently renamed Nationwide Argosy Solutions, combined its two Florida operations, Franklin Communications and Dodd Communications into the renamed Franklin Dodd Communications. Nationwide Argosy Solutions is a portfolio company of Davis, Tuttle Venture Partners.
DG3, a global print services provider with roots in financial reporting, backed by Arsenal Capital Partners, acquired the print-related trade and assets of Sterling Financial Print. Sterling Financial Print, headquartered in London, is now part of DG3’s European print operations, while Sterling itself, having now shed its print production capabilities, focuses on financial information services including its proprietary virtual data room (VDR) offering.
Two significant players in the book manufacturing sector, Edwards Brothers and Malloy, have come together to form Edward Brothers Malloy. In a previous and related two part deal, announced in January 2011, Lion Equity Partners acquired Rockpoint Logistics from Kaplan, Inc., the subsidiary of The Washington Post Co., and then outsourced the operating management of Rockpoint Logistics’ printing operation to Edwards Brothers. Rockpoint Logistics offers print-on-demand, very short run printing and fulfillment services.
Archway, a marketing logistics and fulfillment company backed by two PE firms, Tailwind Capital and Black Canyon Capital, acquired Synq Solutions. Synq Solutions brings digital print and additional fulfillment capabilities to Archway. Both companies tout strong support services for companies with business models that require sophisticated multi-location marketing campaigns in retail environments, including automotive dealerships, quick service restaurants (QSR’s), food and beverage companies, and retail chains.
In the packaging space, Rohrer Corporation, backed by ShoreView Industries, acquired Hogue Printing Solutions, bringing manufacturing capacity in Arizona to this Ohio-based company. The roll-up strategy in the printing industry continues to evolve, as noted in the January Target Report. Nationwide Graphics, a veteran roll-up company, recently renamed Nationwide Argosy Solutions, combined its two Florida operations, Franklin Communications and Dodd Communications into the renamed Franklin Dodd Communications. Nationwide Argosy Solutions is a portfolio company of Davis, Tuttle Venture Partners.
In a move contrary to the over-arching consolidation wave rolling over the printing industry, Manroland, the insolvent German press manufacturer, is being split in two. The web press division was acquired by L. Possehl & Co., a German holding company with global manufacturing operations. Ownership of the sheetfed press division moves across the channel to Langley Holdings, a privately owned UK-based engineering group. We suspect that owners of Manroland presses, both web and sheetfed, breathed a sigh of relief hearing about these transactions, hoping that parts and support will continue to be available. It remains to be seen if the market will support two “new” press manufacturers when there was insufficient demand for these world-class machines under one management.
Craftsman Press voluntarily filed for Chapter 11 bankruptcy on February 23rd. Craftsman Press produces direct mail and publications on web press equipment in its 186,000 SF facility in Cheverly, Maryland. The company has the exclusive right to file its plan of reorganization until June 22, 2012. We found five Chapter 7 filings during the month of February in the printing and related industries, including copy shops, an envelope printer, a commercial printer, as well as a corrugated box manufacturer. Beginning this month, we have segregated the listings by filing status, so that readers of The Target Report can focus on the potential opportunities presented by the companies that are operating in Chapter 11.
Craftsman Press voluntarily filed for Chapter 11 bankruptcy on February 23rd. Craftsman Press produces direct mail and publications on web press equipment in its 186,000 SF facility in Cheverly, Maryland. The company has the exclusive right to file its plan of reorganization until June 22, 2012. We found five Chapter 7 filings during the month of February in the printing and related industries, including copy shops, an envelope printer, a commercial printer, as well as a corrugated box manufacturer. Beginning this month, we have segregated the listings by filing status, so that readers of The Target Report can focus on the potential opportunities presented by the companies that are operating in Chapter 11.
| 2012 February - 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 (Intermediary) |
Notes |
Press Releases |
|||
| DG3 | No Data | Jersey City, NJ | Sterling Financial Print | No Data | London, UK | 2/29/12 | No Data | Assets Acquisition | Financial print & media | Link | |||
| Base-Line, Inc. | No Data | Shelton, CT | Graphline, Inc. | No Data | Sunrise, FL | 2/24/12 | No Data | Stock Purchase | Press & Prepress Supplies Dist. | Link | |||
| Precision Paper Company | No Data | Tampa, FL | Dietzgen, Div. Nashua Corp. | No Data | Park Ridge, IL | 2/21/12 | No Data | Acquisition | Reprographic media | Link | |||
| Archway Marketing Services | No Data | Rogers, MN | Synq Solutions | No Data | Atlanta, GA | 2/21/12 | No Data | Acquisition | Fulfillment & Print Mngt. | Link | |||
| Dodd
Communications (Franklin Dodd Communications) |
No Data | Miami, FL | $11.5 | Miami, FL | 2/21/12 | No Data | Acquisition | Commercial
Printing (Sub. Nationwide Argosy) |
Link | ||||
| International Paper | $26,000 | Memphis, TN | Temple-Inland, Inc. | $3,800 | Austin, TX | 2/13/12 | $4,500 | Acquisition (Will divest Bldg. Prdcts.) |
Corrugated
packaging $32/share+$700Mil debt assumed |
Link | |||
| Rohrer Corp. | $77.2 | Wadsworth, OH | Hogue Printing Solutions | No Data | Mesa, AZ | 2/13/12 | No Data | Acquisition | Commercial, digital & packaging | Link | |||
| Lewis
Creative Technologies (Conquest Graphics) |
No Data | Richmond, VA | Lorraine Press | No Data | Salt Lake City, UT | 2/9/12 | No Data | Acquisition (New Direction) |
Commercial printing | Link | |||
| Edwards
Brothers (Edwards Brothers Malloy) |
No Data | Ann Arbor, MI | Malloy, Inc. | No Data | Ann Arbor, MI | 2/6/12 | No Data | Merger | Book
Manufacturing ($115MIl combined rev.) |
Link | |||
| L. Possehl & Co. | € 2,500 | Lübeck, Germany | Manroland Web Systems | No Data | Augsberg, Germany |
2/1/12 | No Data | Acquisition | Purchased in German Insolvency Proceeding | Link | |||
| Langley Holdings PLC | € 500 | Nottinghamshire, England, UK |
Manroland Sheetfed Division | No Data | Offenbach, Germany |
2/1/12 | No Data | Acquisition | Purchased in German Insolvency Proceeding | Link | |||
| Quad/Graphics Inc. | $4,670 | Sussex, WI | Williamson Printing | No Data | Dallas, TX | 2/1/12 | No Data | Acquisition | Commercial Printing | Link | |||
| Indexx | $15.5 | Greenville, SC | Crowson Stone Printing | No Data | Columbia, SC | 2/1/12 | No Data | Assets Acquisition | Commercial Printing | Link | |||
| 2012 February - Bankruptcy Filings in the Printing, Packaging, Paper & Related Industries | ||||||||||||
Filing Party |
Date Case Filed |
Pre-Petition Revenues ($Mil ) |
Case # |
Filing Party Address |
Circuit |
Region & City |
Judge |
Attorney for Debtor |
Notes |
|||
| Chapter 11 Filings: | ||||||||||||
| Graphic
Trade Bindery, Inc. (DBA Craftsman Press) |
2/23/12 | No Data | 12-13189 | Cheverly, MD | 4th | Maryland Greenbelt |
Thomas J. Catliota | Lawrence A. Katz | Web printer: direct mail, publications. | |||
| Chapter 7 Filings: | ||||||||||||
| Front Range Envelope | 2/23/12 | No Data | 12-13030 | Denver, CO | 10th | Colorado Denver |
Sidney B. Brooks | Kimber Z. Smith | Envelope printer. | |||
| KAP Graphics, Inc. | 2/14/12 | No Data | 12-05290 | Mundelein, IL | 7th | Northern
IL Chicago |
A. Benjamin Goldgar | Stuart P Krauskopf | Commercial printer. | |||
| Diter Printing, Inc. | 2/10/12 | No Data | 12-50162 | Harrisonburg, VA | 4th | Western
VA Harrisonburg |
Ross W. Krumm | James O. Clough | Copy shop. | |||
| American
Corrugated, Inc. (AKA American Box Company) |
2/9/12 | No Data | 12-13286 | Riverside, CA | 9th | Central
CA Riverside |
Wayne E. Johnson | Lawrence B Yang | Corrugated box mfg. | |||
| MRH
Printing, Inc. (DBA Proprint) |
2/1/12 | No Data | 12-40796 | Ballwin, MO | 8th | Eastern
MO St. Louis |
Charles E. Rendlen III | Nathan H. Goldberg | Copy shop. | |||
