Berkshire Hathaway, managed by one of the world’s richest, and arguably one of the smartest, investors ever, purchased 63 newspapers from Media General. Lest the reader be too excited about Mr. Buffet’s vote of confidence in the newspaper business, it should be noted that Berkshire Hathaway hedged its bet; also investing in Media General’s remaining broadcast television, digital content and mobile media. Since Berkshire Hathaway traditionally only purchases companies that it intends to own long term, we feel safe in assuming that the “Oracle of Omaha” sees a positive future for his new network of newspapers.
Another billionaire, Thomas Hicks, Texas master of the leveraged buyout and former owner of the Texas Rangers, is behind the purchase of Appleton Papers. Appleton, long known for some of the most unusual coated papers in the printing industry, holds the number one position globally in the production of carbonless paper, the slightly-sticky multi-colored paper used in impact printers. In a nod to a new direction for the company, the corporate name will change to Appvion, signaling management’s intent to branch out into other forms of specialty coatings and the technology behind carbonless paper, microencapsulation. Nonetheless, we think that it’s likely that the company will continue as a manufacturer of specialty papers, and that Mr. Hicks is betting on a future for the paper industry.
In related deals, Versa Capital Management acquired four newspapers from Freedom Communications and the Watermill Group, a Boston private equity firm, acquired Manistique Papers. Manistique Papers operates a specialty mill in the Upper Michigan peninsula that manufactures uncoated printing and writing papers using exclusively 100% recycled fiber. All told, these deals point to a positive future for ink-on-paper technologies.
Ovation Graphics is back for its second major deal since first coming on the scene earlier this year in January, acquiring the Motheral Printing Company in Fort Worth, Texas. Will there be a second encore performance from Ovation this year?
Of note in the continuing migration to digital media, RR Donnelley is back with another “e-transaction”, acquiring EDGAR Online, the service that corporate finance and investment professionals use to manage and file required information. JedFam Group bought the assets in the bankruptcy proceeding of BroadSign International, the digital signage software provider. Quark, at one time far and away the default choice in page layout software, long since dethroned by Abobe’s InDesign, and now owned by Platinum Equity, has stepped into cloud-based software with its acquisition of Mobile IQ digital publishing for tablet and mobiles applications.
The big news in May bankruptcies was the Chapter 11 filing by Houghton Mifflin Harcourt Publishing Co., the venerable publisher of distinguished authors such as Mark Twain and J.R.R. Tolkien. Unsecured creditors listed in the case include RR Donnelley and Williams Lea, each owed more than $20 million in trade debt.
And finally, we must make note of a small printer in Duluth, Georgia that filed for liquidation under Chapter 7 of the Bankruptcy Code. We hope that for the owner, who operated the business under the AlphaGraphics name, the printing business lived up to the corporation’s official name, “On the Way to Paradise, Inc.”
| 2012 May - Mergers and Acquisitions in the Printing, Packaging, Paper & Related Industries | |||||||||||||
Deal Party #1 (Surviving Entity) |
Pre-Deal Revenues ($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 |
|||
| JedFam Group | No Data | Montreal, QC | BroadSign International | No Data | Montreal, QC | 5/31/12 | No Data | Asset sale in bankruptcy | Digital signage software | Link | |||
| Bain Capital | No Data | Boston, MA | Consolidated Container Co. | No Data | Atlanta, GA | 5/31/12 | No Data | Acquisition | Plastic containers | Link | |||
| Ovation Graphics | No Data | Fort Worth, TX | F.L. Motheral | $29.9 | Fort Worth, TX | 5/26/12 | No Data | Acquisiton | Commercial printing | Link | |||
| TCP
Printing (DBA Typecraft) |
No Data | Pittsburgh, PA | MarketPlace Direct | No Data | McKees Rocks, PA | 5/25/12 | No Data | Acquisition (NAPL) |
Commercial printing | Link | |||
| Quark | No Data | Denver, DO | Mobile IQ | No Data | San Francisco, CA | 5/29/12 | No Data | Acquisition | Digital publishing | Link | |||
| RR Donnelley | $10,018 | Chicago, IL | EDGAR Online | $27.8 | Rockville, MD | 5/22/12 | $70.5 | Acquisition | Online financial reporting | Link | |||
| Premier
Color Corporation (Atkins Printing) |
No Data | Manchester, ME | Atkins Printing | No Data | Waterville, ME | 5/18/12 | No Data | Asset Acquisition | Print sourcing & distribution | Link | |||
| Hicks
Acquisition Co II (Appvion) |
No Data | Dallas, TX | Appleton Papers | $860.0 | Appleton, WI | 5/18/12 | $675.0 | Acquisition | Printing papers | Link | |||
| Versa Capital Management | No Data | Philadelphia, PA | Freedom Communications | No Data | Irvine, CA | 5/17/12 | No Data | Acquisition - Partial | Acquired 4 newspapers | Link | |||
| Berkshire Hathaway | $143,688 | Omaha, NE | Media General | No Data | Richmond, VA | 5/17/12 | $142.0 | Acquisition
- Partial (Peter J. Solomon) |
63 Daily & weekly newspapers | Link | |||
| D&W Fine Pack | No Data | Fountain Inn, SC | Clear
Lam Packaging Thermoforming Division |
No Data | Elk Grove, IL | 5/17/12 | No Data | Add-on Acquisition | Bakery & Food Containers | Link | |||
| Nicolet Capital Partners | No Data | Chicago, IL | Interflex Group | $100.0 | Wilkesboro, NC | 5/16/12 | No Data | Acquisition (Lincoln Intntl.) |
Flexo, packaging | Link | |||
| CP Graphics | No Data | Tucson, AZ | ScoreBoardWhiz.com | No Data | San Diego, CA | 5/11/12 | No Data | Acquisition | Custom scoring cards | Link | |||
| Domtar Corporation | $5,612 | Montreal, QC | EAM Corporation | $45.0 | Jessup, GA | 5/14/12 | $65.0 | Acquisition | Absorbent composite materials | Link | |||
| Premier Press | No Data | Portland, OR | Vince's Diecutting | No Data | Portland, OR | 5/8/12 | No Data | Acquisition | Diecutting & related finishing | Link | |||
| Field Ventures | No Data | Northbrook, IL | Primary Packaging | No Data | Bolivar, OH | 5/7/12 | No Data | Acquisition (Mesirow Financial) |
Printed poly film and bags. | Link | |||
| 2012 May - Bankruptcy Filings in the Printing, Packaging, Paper & Related Industries | ||||||||||||
Filing Party |
Date Case Filed |
Pre-Petition Revenues ($Mil ) |
Case # |
Filing Party Address |
Circuit |
Region & City |
Judge |
Attorney for Debtor |
Notes |
|||
| Chapter 11 Filings: | ||||||||||||
| Nexgen Press Corp | 5/23/12 | No Data | 12-23240 | Hamilton, NJ | 3rd | New
Jersey Trenton, NJ |
Kathryn C. Ferguson | Barry W. Frost | Printing & copying | |||
| Gohrs Printing Services, Inc. | 5/24/12 | No Data | 12-10758 | Erie, PA | 3rd | Western
PA Erie, PA |
Thomas P. Agresti | Lawrence C. Bolla | Commercial printing | |||
| Houghton Mifflin Harcourt Publishing Co. | 5/21/12 | No Data | 12-12171 | Boston, MA | 2nd | Southern
NY New York, NY |
Robert E. Gerber | Jeffrey D. Saferstein | Book publishers | |||
| Art Horizons, Inc. | 5/8/12 | No Data | 12-24834 | Batesville, MS | 6th | Western
TN Memphis, TN |
George W. Emerson Jr. | Steven N. Douglass | Art prints & posters | |||
| Chapter 7 Filings: | ||||||||||||
| San Francisco Guide, Inc. | 5/31/12 | No Data | 12-31651 | San Francisco, CA | 9th | Northern
CA San Francisco, CA |
Thomas E. Carlson | Ning Yu | Publisher | |||
| Prairie Offset Printing & Marketing Solutions, Inc. | 5/8/12 | No Data | 12-32774 | Shakopee, MN | 8th | Minnesota St. Paul, MN |
Gregory F. Kishel | Paul Ross | Trade & commercial printing | |||
| On
the Way to Paradise, Inc. (AKA AlphaGraphics) |
5/7/12 | No Data | 12-61883 | Duluth, GA | 11th | Northern
GA Atlanta, GA |
Paul W. Bonapfel | Christopher J. York | Printing & copying | |||
